The slope of the demand curve and the price elasticity of demand are
A)basically the same thing
B)determined by supply
C)are derived from production and distribution costs
D)different because slope is based on absolute changes and elasticity is based on percentage changes
E)implicit in the shape of the supply curve

Question

Quizplus · Accepted Answer

The slope of the demand curve measures the absolute change in quantity demanded in response to a change in price, while the price elasticity of demand measures the percentage change in quantity demanded in response to a change in price. Therefore, they are different concepts.

The Slope of the Demand Curve and the Price Elasticity