The price elasticity of demand along a demand curve with a constant slope:
A)is equal to the slope.
B)is greater than the slope.
C)is less than the slope.
D)increases in absolute value as the price rises.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. Along a demand curve with a constant slope, the elasticity varies at different points: it increases in absolute value as we move up the curve (i.e., as the price rises), because the percentage change in quantity becomes larger relative to the percentage change in price.

The Price Elasticity of Demand Along a Demand Curve with a Constant