Asked by
Daniella Lopes
on Nov 25, 2024
Verified
The price elasticity of demand of a straight-line demand curve is
A) elastic in high-price ranges and inelastic in low-price ranges.
B) elastic but does not change at various points on the curve.
C) inelastic but does not change at various points on the curve.
D) 1 at all points on the curve.
Straight-Line Demand
A demand curve that displays a constant relationship between price and quantity demanded, represented graphically as a straight line.
Price Ranges
The spectrum of possible prices at which a good or service can be bought or sold, varying by market conditions, quality, location, and other factors.
Elasticity
A concept that measures the responsiveness of one variable in relation to changes in another variable, often used in economics to describe how changes in price affect supply or demand.
- Familiarize yourself with how the price elasticity of demand correlates with the gradient of the demand curve.
Verified Answer
SW
Learning Objectives
- Familiarize yourself with how the price elasticity of demand correlates with the gradient of the demand curve.