Therefore, the elasticity of demand between these two points is

which is 0.45, an amount smaller than

one, showing that the demand is inelastic in this interval. Price elasticities of demand are alwaysnegative

since price and quantity demanded always move in opposite directions (on the demand curve). By convention,
we always talk about elasticities as positive numbers. Mathematically, we take the absolute value of the result.

We will ignore this detail from now on, while remembering to interpret elasticities as positive numbers.

This means that, along the demand curve between point B and A, if the price changes by 1%, the quantity

demanded will change by 0.45%. A change in the price will result in a smaller percentage change in the

quantity demanded. For example, a 10% increasein the price will result in only a 4.5% decreasein quantity

demanded. A 10% decreasein the price will result in only a 4.5% increasein the quantity demanded. Price
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