Introduction to Economics 1 Deneme Sınavı Sorusu #1278397
Which of the following is true?
A linear demand curve have a different elasticity along the curve. |
A linear demand curve have a constant elasticity along the curve. |
A linear demand curve have a different slope along the curve. |
A non-linear demand curve have a constant slope along the curve. |
For the linear demand curve, price elasticity of demand increases as you move downward along the demand curve. |
For the linear demand curves, price elasticity of demand falls as you move downward along the demand curve. Non-linear demand curves mostly have a different price elasticity along
the entire curve since the slope changes as you move along the demand curve. On the other hand, the linear demand curves have a constant slope.As you move down a linear demand curve, the slope which is equal to the ratio of the absolute change in price to that in quantity, remains constant. Answer is A.
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