All of the following are examples of a constant-elasticity demand curve except a(n)
A)perfectly elastic demand curve
B)linear demand curve with a slope of -4
C)perfectly inelastic demand curve
D)unit-elastic demand curve
E)vertical demand curve

Question

Quizplus · Accepted Answer

A constant-elasticity demand curve has a consistent slope, indicating a consistent level of responsiveness to changes in price. A perfectly elastic demand curve is horizontal and indicates an infinite level of responsiveness, a perfectly inelastic demand curve is vertical and indicates no responsiveness, a unit-elastic demand curve has a slope of -1 and indicates a consistent percentage change in quantity demanded for a given percentage change in price, and a vertical demand curve also indicates no responsiveness. Only a linear demand curve with a slope of -4 does not have a consistent slope and therefore is not an example of a constant-elasticity demand curve.

All of the Following Are Examples of a Constant-Elasticity Demand