A linear demand curve:
A)has a constant slope.
B)has a constant elasticity.
C)will be more elastic when price is low and more inelastic when price is high.
D)must be either perfectly inelastic or perfectly elastic.

Question

Quizplus · Accepted Answer

A linear demand curve has a constant slope, which means that for each unit increase in price, there is a constant decrease in quantity demanded. The slope (or coefficient) of the linear equation represents the elasticity at any point on the demand curve. However, the elasticity will vary along the curve, meaning that it will be more elastic at higher prices and more inelastic at lower prices. A linear demand curve can be neither perfectly inelastic nor perfectly elastic.

A Linear Demand Curve