If a demand curve has a price elasticity coefficient equal to negative 1 throughout, then the slope of the demand curve is also negative 1 throughout.

Question

Quizplus · Accepted Answer

The price elasticity coefficient and the slope of the demand curve are two different measures. The price elasticity coefficient measures the percentage change in quantity demanded given a percentage change in price, while the slope of the demand curve measures the change in quantity demanded given a change in price. While a demand curve with a price elasticity coefficient of -1 is considered elastic (because a percentage increase in price leads to an equal percentage decrease in quantity demanded), its slope may not necessarily be constant throughout.

If a Demand Curve Has a Price Elasticity Coefficient Equal