Question

Given a linear demand curve, we know that demand is unitary elastic at prices where revenues...

Given a linear demand curve, we know that demand

is unitary elastic at prices where revenues are increasing
is inelastic at relatively high prices
has a constant elasticity at all prices
is elastic at relatively high prices
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Answer #1

The elasticity of the linear demand curve varies through out the curve, as we down along the curve the elasticity will decrease that is the curve become more inelastic. In the upper part the demand is elastic that is at high prices and at lower prices the demand curve is inelastic. At the mid point of the demand curve it is unitary elastic.

Ans: is elastic at very high prices.

Ans:

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