Which of the following is correct?
i.All linear demand curves have a constant slope and a constant price elasticity of demand.
ii.The price elasticity of demand changes while moving along a downward-sloping linear demand curve.
iii.The magnitude of the slope of all linear demand curves is equal to the price elasticity of demand.
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

While all linear demand curves have a constant slope, the price elasticity of demand changes along the curve. As a result, option i is incorrect. Additionally, the magnitude of the slope of linear demand curves is not equal to the price elasticity of demand (option iii). Hence, the only correct statement is ii).

Which of the Following Is Correct