The absolute value of the price elasticity of demand at the midpoint of a linear demand curve is always
A)greater than one
B)less than one
C)one
D)zero
E)infinity

Question

Quizplus · Accepted Answer

The absolute value of the price elasticity of demand at the midpoint of a linear demand curve is always equal to one. This is because the midpoint of a linear demand curve represents the point where the percentage change in price is equal to the percentage change in quantity demanded, resulting in a unitary elasticity value (i.e., absolute value of elasticity equal to one).

The Absolute Value of the Price Elasticity of Demand at the Midpoint