A linear demand curve:
A) has a constant elasticity.
B) will be more elastic when price is low and more inelastic when price is high.
C) must be either perfectly inelastic or perfectly elastic.
D) has a constant slope.

Question

Quizplus · Accepted Answer

A linear demand curve has a constant slope, which means that the change in quantity demanded is always proportional to the change in price. It does not have a constant elasticity, as elasticity changes along the curve depending on the initial price and quantity demanded. It also does not have to be perfectly inelastic or perfectly elastic, as these are extreme cases that are unlikely to reflect real-world demand behavior.

A Linear Demand Curve