Asked by Eugene Dioso on Jul 24, 2024
Verified
A demand curve with constant slope over all quantity values will always have a price elasticity of demand equal to -1.
Constant Slope
Refers to a straight line on a graph that illustrates a steady and unchanging rate of change between two variables.
Price Elasticity
Price elasticity measures how much the quantity demanded of a good responds to a change in its price, indicating how changes in price influence consumer purchasing behavior.
Demand Curve
A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.
- Master the concept of price elasticity of demand and the methodology behind its determination.
Verified Answer
VC
Vitor CamargoJul 28, 2024
Final Answer :
False
Explanation :
A demand curve with a constant slope does not necessarily have a constant price elasticity of demand. Price elasticity of demand varies along the curve and depends on the specific price and quantity values, not just the slope.
Learning Objectives
- Master the concept of price elasticity of demand and the methodology behind its determination.