Asked by Shyla Schneider on Jul 21, 2024
Verified
A demand curve with continuously changing slope over all quantity values will always have a price elasticity of demand equal to infinity.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influencing pricing strategies.
Demand Curve
A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.
Infinity
A concept in mathematics and physics that refers to a quantity without bound or end.
- Understand the concept of price elasticity of demand and how it is determined.
Verified Answer
SM
Sophia MorrowJul 27, 2024
Final Answer :
False
Explanation :
A demand curve with continuously changing slope indicates varying responsiveness of quantity demanded to price changes, not necessarily an elasticity of infinity, which would imply perfect elasticity (demand infinitely responsive to price changes).
Learning Objectives
- Understand the concept of price elasticity of demand and how it is determined.