Which of the following is true regarding the price elasticity of demand?
A) Demand is generally more elastic in the long run than in the short run.
B) Along a single demand curve, demand elasticity decreases as you move down the curve (to lower prices).
C) A demand curve that is flatter (has a less steep slope) is relatively more elastic than a demand curve that has a steeper slope.
D) All of the above are true.

Question

Quizplus · Accepted Answer

A) Demand is generally more elastic in the long run than in the short run, as in the long run consumers have more time to adjust their behavior and find substitute products.
B) Along a single demand curve, demand elasticity decreases as you move down the curve (to lower prices), as at lower prices, the percentage change in price becomes smaller and thus the percentage change in quantity demanded becomes smaller.
C) A demand curve that is flatter (has a less steep slope) is relatively more elastic than a demand curve that has a steeper slope, as a flatter curve means that a small change in price will cause a larger change in quantity demanded.

Which of the Following Is True Regarding the Price Elasticity