The elasticity all along a downward-sloping straight-line demand curve,
A)will be equal to -1 at all points.
B)will be different at each point on the curve.
C)will be equal to zero at all points.
D)will be constant.

Question

Quizplus · Accepted Answer

The elasticity along a linear demand curve changes as the price and quantity change. At higher prices, the demand is more elastic (i.e., there is a greater change in quantity demanded for a given change in price), and as the price decreases, the demand becomes more inelastic (i.e., there is a smaller change in quantity demanded for a given change in price). Therefore, the elasticity will be different at each point on the curve.

The Elasticity All Along a Downward-Sloping Straight-Line Demand Curve