# Price elasicity model calculations?

## ok, doing a task and have worked out I think what i need, but I have to be honest this price elasticity thing melts my brain. can i get a steer as to whether i am way of course or not. thanks

The question is as follows - Suppose you are the manager of a restaurant that serves an average of 400 meals per day at an average price per meal of $20. On the basis of a survey, you have determined that reducing the price of an average meal to $18 would increase the quantity demanded to 450 per day. Suppose you have reduced the average price of a meal to $18 and are considering a further reduction to $16. Another survey shows that the quantity demanded of meals will increase from 450 to 500 per day. Compute the price elasticity of demand between these two points.

I am asked to calculate the price elasticity of both ranges, and i have worked that out to be -1.25 for the first drop and 1 for the second.

My confusion comes when the answers appear to be a negative and a positive? Am i doing something wrong?

sorry but this is quite confusing to a newbie economics person.

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