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

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, resulting in infinite elasticity.

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