A linear demand curve will have absolute values of the coefficient of price elasticity that:
A) exist only for a portion of the curve; on some portions elasticity cannot be measured.
B) are all less than 1.
C) are all equal to 1.
D) range from less than 1 to greater than 1.

Question

Quizplus · Accepted Answer

The coefficient of price elasticity on a linear demand curve varies along the curve, with elasticity being inelastic (less than 1), unit elastic (equal to 1), and elastic (greater than 1) at different points.

A Linear Demand Curve Will Have Absolute Values of the Coefficient