At the midpoint of a downward-sloping linear demand curve,what would price elasticity be
A)inelastic
B)elastic
C)unit elastic
D)perfectly elastic

Question

Quizplus · Accepted Answer

At the midpoint of a linear demand curve, the price elasticity of demand is unit elastic, which means that the percentage change in quantity demanded is equal to the percentage change in price. This is because the slope of the demand curve is steepest at the midpoint, where the absolute value of the slope is equal to 1. This makes it difficult to determine whether the demand curve is elastic or inelastic, as it depends on the specific values of price and quantity. However, at the midpoint, the demand curve is exactly unit elastic.

At the Midpoint of a Downward-Sloping Linear Demand Curve,what Would