Any downward-sloping straight line demand curve displays:
A) elastic and inelastic demand.
B) positive and strong demand.
C) elastic, inelastic and negligible demand.
D) elastic, inelastic and unitary elastic demand.

Question

Quizplus · Accepted Answer

A downward-sloping straight line demand curve displays three types of demand: elastic, inelastic, and unitary elastic demand. At the top of the demand curve, demand is elastic (i.e., a small change in price results in a large change in quantity demanded). In the middle of the demand curve, demand is unitary elastic (i.e., a change in price results in an equal proportional change in quantity demanded). At the bottom of the demand curve, demand is inelastic (i.e., a large change in price results in a small change in quantity demanded).

Any Downward-Sloping Straight Line Demand Curve Displays