Evaluate the following statements: (I) The slope of the demand curve is always equal to the elasticity of demand.
(II) Moving down alone a downward-sloping straight-line demand curve, the elasticity of demand fallf.
A)(I) and (II) are both true.
B)(I) is true and (II) is false.
C)(I) is false and (II) is true.
D)(I) and (II) are both false.

Question

Quizplus · Accepted Answer

The slope of the demand curve is not the same as the elasticity of demand. Elasticity varies along a straight-line demand curve, and it decreases as you move down the curve.

Evaluate the Following Statements: (I) the Slope of the Demand