Within different price ranges along a linear demand curve, elasticities are:
A) constant.
B) different.
C) equal.
D) the same as slope.

Question

Quizplus · Accepted Answer

Elasticities are different at different price ranges along a linear demand curve. This is because elasticity measures the responsiveness of the quantity demanded to changes in price, and this responsiveness will vary depending on where on the demand curve the price and quantity combination is located. In general, the elasticity will be higher (meaning demand is more sensitive to price) at higher prices and lower at lower prices.

Within Different Price Ranges Along a Linear Demand Curve, Elasticities