Which of the following statements about the price elasticity of demand along a downward-sloping linear demand curve is true?
A)It is inelastic at high prices and elastic at low prices.
B)It is unit elastic throughout the demand curve.
C)It is elastic at the highest prices and inelastic at the lowest prices.
D)It is perfectly elastic at very high prices and perfectly inelastic at very low prices.

Question

Quizplus · Accepted Answer

At high prices, the percentage change in quantity demanded is relatively large compared to the percentage change in price, making demand elastic. At low prices, the percentage change in quantity demanded is relatively small, making demand inelastic.

Which of the Following Statements About the Price Elasticity of Demand