Consider two demand curves with different slopes. It is possible to predict ranges on each demand curve where the price elasticities of demand will be different.

Question

Quizplus · Accepted Answer

Price elasticity of demand varies depending on the slope of the demand curve. Flatter demand curves have higher price elasticity in a wider price range, while steeper demand curves have lower price elasticity in a narrower price range. Therefore, it is possible to predict different ranges of price elasticity on different demand curves with different slopes.

Consider Two Demand Curves with Different Slopes