Exhibit 5-15
-Which of the demand curves in Exhibit 5-15 has constant elasticity everywhere?
A) the curve in graph c only
B) the curves in graphs a and b
C) the curves in graphs a, b, and c
D) all of the curves shown
E) the curves in graphs c, d, and e

Question

Exhibit 5-15 
-Which of the demand curves in Exhibit 5-15 has constant elasticity everywhere?
A) the curve in graph c only 
B) the curves in graphs a and b 
C) the curves in graphs a, b, and c 
D) all of the curves shown 
E) the curves in graphs c, d, and e

Quizplus · Accepted Answer

The curves in graphs a, b, and c have the same slope and therefore the same elasticity at every point along the curve. This means they have constant elasticity everywhere. The curves in graphs d and e have varying slopes (and therefore varying elasticity) at different points along the curve. The curve in graph c has a constant elasticity because it is a straight line passing through the origin, which means a given percentage change in price will always result in the same percentage change in quantity demanded.

Exhibit 5-15 -Which of the Demand Curves in Exhibit 5-15 Has Constant