Identify a statement that is true about a linear demand curve.
A)Along a linear demand curve, both the slope and price elasticity are constant.
B)Along a linear demand curve, the price elasticity is constant, but the slope varies.
C)Along a linear demand curve, total revenues are constant.
D)Along a linear demand curve, the slope is constant, but the price elasticity varies.
E)Along a linear demand curve, total revenues are negative.

Question

Quizplus · Accepted Answer

The slope of a linear demand curve is constant because it is a straight line, but the price elasticity of demand varies along the curve. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price, and it changes at different points along a linear demand curve due to the changing ratio of price to quantity.

Identify a Statement That Is True About a Linear Demand