Picture a linear downward-sloping demand curve. The price elasticity of demand
A) remains the same for all price ranges on that demand curve
B) varies among the price ranges on that demand curve
C) varies but is always greater than one whatever the price range on that demand curve
D) is always 1.0 for any price range where the price difference is $1, such as $10 and $9
E) is always zero

Question

Quizplus · Accepted Answer

The price elasticity of demand varies along a linear demand curve because the percentage change in quantity demanded relative to the percentage change in price changes at different points along the curve.

Picture a Linear Downward-Sloping Demand Curve