On a straight- line downward- sloping demand curve, the maximum elasticity of demand occurs
A) at its vertical intercept.
B) at its midpoint.
C) where it intersects the supply curve.
D) at its horizontal intercept.

Question

Quizplus · Accepted Answer

The maximum elasticity of demand on a straight-line downward-sloping demand curve occurs at its vertical intercept, where the price is highest and quantity demanded is zero, making the elasticity infinite.

On a Straight- Line Downward- Sloping Demand Curve, the Maximum