Asked by Spencer Hamer- on May 26, 2024
Verified
If the demand curve is a linear function of price, then the price elasticity of demand is the same at all prices.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity indicating responsiveness.
Demand Curve
A graph depicting the relationship between the price of a good and the quantity demanded by consumers, typically showing an inverse relationship.
- Gain insight into the concept and evaluation procedures of price elasticity of demand.
Verified Answer
KA
keliza alvarezMay 29, 2024
Final Answer :
False
Explanation :
The price elasticity of demand changes along a linear demand curve because it depends on the slope of the demand curve and the ratio of price to quantity, both of which change as one moves along the curve.
Learning Objectives
- Gain insight into the concept and evaluation procedures of price elasticity of demand.