Evaluate the following statements:
I.The slope of the demand curve is always equal to the elasticity of demand.
II.Moving down along a downward-sloping, straight-line demand curve, the elasticity of demand falls.

A)(I) and (II) are both true.
B)(I) is true and (II) is false.
C)(I) is false and (II) is true.
D)(I) and (II) are both false.

Question

Evaluate the following statements: 
I.The slope of the demand curve is always equal to the elasticity of demand.
II.Moving down along a downward-sloping, straight-line demand curve, the elasticity of demand falls.
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A)​(I) and (II) are both true.
B)​(I) is true and (II) is false.
C)​(I) is false and (II) is true.
D)​(I) and (II) are both false.

Quizplus · Accepted Answer

I. The slope of the demand curve is not always equal to the elasticity of demand. The slope is a constant measure of the rate of change between price and quantity demanded, while elasticity of demand measures the percentage change in quantity demanded resulting from a percentage change in price, which can vary along the curve.II. Moving down along a downward-sloping, straight-line demand curve, the elasticity of demand indeed falls, moving from elastic through unit elastic to inelastic regions as we move from higher to lower points on the curve.

Evaluate the Following Statements