A single demand curve can have both elastic and inelastic parts over different price ranges.

Question

Quizplus · Accepted Answer

This is known as the law of demand elasticity. At lower prices, consumers are generally more sensitive to price changes, causing the demand to be more elastic. At higher prices, consumers may be less sensitive to price changes, causing the demand to be more inelastic. Therefore, a single demand curve can have both elastic and inelastic parts over different price ranges.

A Single Demand Curve Can Have Both Elastic and Inelastic