Elasticity along a demand curve:
A) is constant if the demand curve is linear.
B) changes only when the demand curve is bowed out.
C) changes when the demand curve is linear.
D) changes only when the demand curve is bowed in.

Question

Quizplus · Accepted Answer

Elasticity along a linear demand curve changes at different points. At high prices and low quantities, demand is relatively elastic, and at low prices and high quantities, it becomes relatively inelastic. This variation occurs because the percentage change in quantity demanded relative to the percentage change in price varies along the curve.

Elasticity Along a Demand Curve