Asked by DELINA FILLI on Jul 25, 2024

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A demand curve with constant slope over all quantity values can have a continuously changing price elasticity of demand.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies.

Constant Slope

Refers to a linear relationship plotted on a graph where the rate of change between the variables remains unchanged across the graph.

  • Acquire knowledge that the price elasticity of demand changes at every position on a linear demand curve.
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GS
Gursher SekhonAug 01, 2024
Final Answer :
True
Explanation :
The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, and it depends on the percentage change in quantity demanded relative to the percentage change in price. Even if a demand curve has a constant slope (indicating a linear relationship between price and quantity), the relative changes (percentages) in price and quantity can vary at different points along the curve, leading to a continuously changing price elasticity of demand.