Final answer:
The correct statement about price elasticity is that it is often a negative number due to the inverse relationship between price and volume. Price elasticities are categorized as elastic, inelastic, and unitary, and these categories depend on the absolute value of the elasticity figure with respect to one.
Step-by-step explanation:
Among the statements provided, B) Price elasticity is often a negative number due to the inverse relationship between price and volume is true. This is because as price increases, typically, the quantity demanded decreases and vice versa. This inverse relationship is reflected in the negative sign of the price elasticity coefficient.
Price elasticities can be categorized into three types: elastic, inelastic, and unitary elasticity. Elastic demand means the percentage change in quantity demanded is greater than the percentage change in price, and these are represented by elasticities greater than one in absolute value. Conversely, inelastic demand implies the percentage change in quantity demanded is less than the percentage change in price, represented by elasticities less than one in absolute value. Lastly, unitary elasticity occurs when the percentage changes in price and quantity demanded are equal, which is when the elasticity is exactly one.
It's important to note that price elasticity figures are typically interpreted as absolute values due to the consistent negative sign, making statement B) correct, while statements A), C), D), and E) contain inaccuracies or misunderstandings about the concept of price elasticity.