Assume that the quantity of steak is plotted on the horizontal axis and all other goods are plotted on the vertical axis.For the range in which the price-consumption curve is downward sloping,the price elasticity of demand for steak:

Question

Quizplus · Accepted Answer

A downward sloping price-consumption curve indicates that as the price of steak decreases, the quantity demanded of steak increases by a relatively large amount. This suggests that the demand for steak is responsive to changes in price, meaning that the price elasticity of demand is relatively high (i.e., elastic).

Assume That the Quantity of Steak Is Plotted on the Horizontal