Within different price ranges along a linear demand curve, elasticities are:
A) constant.
B) different.
C) equal.
D) the same as slope.
E) negative 1.

Question

Quizplus · Accepted Answer

Along a linear demand curve, elasticities are different within different price ranges. This is because elasticity is dependent on the price range and the slope of the curve. As the price increases or decreases from a certain point, the elasticity changes. Therefore, the elasticities are not constant or equal along the curve, but vary within different price ranges.

Within Different Price Ranges Along a Linear Demand Curve, Elasticities