Consider the demand curve Q^d = 5P^-¹. The elasticity of demand along this demand curve A) is inelastic B) is elastic C) is unitary elastic D) falls as the price falls

Name: Consider the demand curve Q d = 5P - 1 . The elasticity of demand along this demand curve A) is inelastic B) is elastic C) is unitary elastic D) falls as the price falls
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Question

Quizplus · Accepted Answer

The demand curve Q^d = 5P^-1 is a constant elasticity demand curve with an elasticity of -1, indicating unitary elasticity.

Consider the Demand Curve Qd = 5P -1

Consider the Demand Curve Q^d = 5P^-¹