Within different price ranges along a demand curve, price elasticities of demand are
A) constant across all price ranges
B) different, and greater, equal to, or less than one depending on the price range
C) positive or negative, depending upon whether they are elastic or inelastic
D) always less than one because total revenue increases when price falls
E) always greater than one because total revenue increases when price falls

Question

Quizplus · Accepted Answer

Price elasticities of demand vary along the demand curve because the sensitivity of quantity demanded to price changes depends on the specific price range. At different price levels, consumers' responsiveness to price changes can differ, leading to elasticities that are greater than, equal to, or less than one.

Within Different Price Ranges Along a Demand Curve, Price Elasticities