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)decreases in absolute value as quantity demanded rises.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. Along a linear demand curve with a constant slope, the elasticity varies at different points. It decreases in absolute value as we move down the curve (i.e., as quantity demanded increases) because the percentage change in quantity demanded relative to the percentage change in price decreases.

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