A curve whose price elasticity of demand is the same at every point is:
A) a constant elasticity of demand curve.
B) a straight, negatively sloped line.
C) a straight, positively sloped line.
D) none of the above.

Question

Quizplus · Accepted Answer

A constant elasticity of demand curve means that the price elasticity of demand is the same (constant) at every point on the curve. This is different from a straight line, which may have a constant slope but does not have a consistent elasticity of demand. A constant elasticity of demand curve typically has a curved shape, indicating that the responsiveness of demand to price changes is greater at some price levels than others.

A Curve Whose Price Elasticity of Demand Is the Same