Which of the following statements about the price elasticity of demand is true?
A)Slope and elasticity measure the same things.
B)Price elasticity of demand varies depending on how price and quantity are measured.
C)It is important to know whether the price elasticity of demand is a positive or negative number.
D)The slope of a demand curve does not tell us the price elasticity of demand.
E)Price elasticity is the same everywhere along a demand curve of any shape.

Question

Quizplus · Accepted Answer

The slope of a demand curve tells us the rate at which quantity changes in response to a change in price, but it does not tell us the price elasticity of demand. The price elasticity of demand is determined by the percentage change in quantity demanded relative to the percentage change in price, and can be calculated using the midpoint formula.

Which of the Following Statements About the Price Elasticity of Demand