The price elasticity of a demand curve with a constant slope:
A) is equal to the slope.
B) is greater than the slope.
C) is less than the slope.
D) decreases in absolute value as quantity demanded rises.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. For a demand curve with a constant slope, the price elasticity of demand decreases in absolute value as one moves down the curve (i.e., as quantity demanded rises), because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

The Price Elasticity of a Demand Curve with a Constant