Along a demand curve with a constant slope, the price elasticity of demand:1 pointwill be greater at higher prices than at lower prices. is constant.will be greater at lower prices than at higher prices.is always equal to 1.
Question
Along a demand curve with a constant slope, the price elasticity of demand:1 pointwill be greater at higher prices than at lower prices. is constant.will be greater at lower prices than at higher prices.is always equal to 1.
Solution
The price elasticity of demand will be greater at higher prices than at lower prices. This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. When the price is high, a small decrease in price will result in a large increase in quantity demanded, making the price elasticity of demand high. Conversely, when the price is low, a small decrease in price will result in a small increase in quantity demanded, making the price elasticity of demand low. Therefore, along a demand curve with a constant slope, the price elasticity of demand will be greater at higher prices than at lower prices.
Similar Questions
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The price elasticity of demand between two points on a demand curve is known asChoose one optionArc elasticity of demandCross price elasticityIncome elasticity of demandPoint elasticity of demand
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