In case of a downward-sloping,linear demand curve,the price elasticity of demand for a good ________.
A) is zero between any two points on the curve
B) is one between any two points on the curve
C) is different at different points on the curve
D) is equal to the slope between different points on the demand curve

Question

Quizplus · Accepted Answer

The price elasticity of demand for a good is different at different points on a downward-sloping linear demand curve. This is because as price decreases, the quantity demanded increases, but not all consumers will respond to the price change in the same way. Those who are more price-sensitive will increase their quantity demanded more than those who are less price-sensitive. Therefore, the price elasticity of demand will vary at different points on the curve.

In Case of a Downward-Sloping,linear Demand Curve,the Price Elasticity of Demand