If the slope of a demand curve is constant, then we know that
A) elasticity of demand is also elastic everywhere.
B) elasticity of demand is constant and elastic.
C) elasticity of demand is inelastic everywhere.
D) elasticity of demand varies along the demand curve.

Question

Quizplus · Accepted Answer

The slope of a demand curve tells us how much the quantity demanded changes in response to a change in price. The elasticity of demand, on the other hand, tells us how responsive quantity demanded is to a change in price. If the slope of the demand curve is constant, then we know that the change in quantity demanded is proportional to the change in price, but we do not know how responsive quantity demanded is overall. Therefore, elasticity of demand varies along the demand curve.

If the Slope of a Demand Curve Is Constant, Then