On a linear demand curve,demand at very low prices will be:
A)price-inelastic.
B)price-elastic.
C)price unit-elastic.
D)perfectly price-elastic.

Question

Quizplus · Accepted Answer

On a linear demand curve, demand at very low prices is price-inelastic because as the price decreases, the percentage change in quantity demanded is smaller relative to the percentage change in price, leading to an elasticity coefficient of less than one.

On a Linear Demand Curve,demand at Very Low Prices Will