The price elasticity of demand for a downward sloping straight line demand curve is: a. constant...
The price elasticity of demand for a downward sloping straight line demand curve is:
a. constant as the price changes along the curve
b. a number ranging from negative infinity to positive infinity
c. given by the ratio of price and quantity
d. lower in absolute value as the price drops along the curve
Homework Answers
Ans. d. lower in absolute value as the price drops along the curve
The price elasticity of demand for a downward sloping straight-line demand curve is higher ( elastic at higher prices and lower quantities), lower ( inelastic at lower prices and higher quantities) and unit elastic at midpoint because of elasticity measures on the downward sloping straight-line demand curve over a part of demand curve that correspondence to particular range of price and quantity.
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