A linear demand curve will have which of the following properties?
A) a slope that is constant and price elasticity that varies
B) constant slope and constant price elasticity
C) constant price elasticity and varying slope
D) varying slope and varying elasticity

Question

Quizplus · Accepted Answer

A linear demand curve will have a constant slope, but price elasticity will vary at different points along the curve. This is because as price changes, the quantity demanded will also change, but this change in quantity demanded may be larger or smaller depending on how price sensitive consumers are at different price points.

A Linear Demand Curve Will Have Which of the Following