Elasticity along a downward sloping linear demand curve
A)is constant and equal to the slope of the curve.
B)is constant and equal to the slope times the ratio of price to quantity.
C)changes along the curve.
D)does not vary with price unless the good is expensive.

Question

Quizplus · Accepted Answer

Elasticity changes along the curve because it is influenced by the relative changes in price and quantity demanded. At higher prices and lower quantities, price changes have a greater impact on demand, making it more elastic. At lower prices and higher quantities, price changes have a smaller impact on demand, making it less elastic. Therefore, elasticity varies along a downward sloping linear demand curve.

Elasticity Along a Downward Sloping Linear Demand Curve