The elasticity of demand is related to the slope of the demand curve
A)and only the slope of the demand curve.
B)but also the (price, quantity)position on the demand curve.
C)but also the slope of the supply curve.
D)and whether the good is normal or inferior.

Question

Quizplus · Accepted Answer

The elasticity of demand is related to the slope of the demand curve, but it also depends on the specific (price, quantity) point on the curve. This is because the percentage change in quantity demanded in response to a price change will depend on how far along the demand curve the market is operating. A steeper slope (i.e. more inelastic demand) indicates that a change in price will result in a relatively smaller change in quantity demanded, while a flatter slope (i.e. more elastic demand) indicates that a price change will result in a relatively larger change in quantity demanded. The elasticity of demand does not depend on the slope of the supply curve or whether the good is normal or inferior.

The Elasticity of Demand Is Related to the Slope of the Demand