PRC-3 · Chapter 11 · Question 55 of 57
Even if a downward-sloping demand curve is a perfectly straight line with a constant mathematical slope, its price elasticity of demand will continuously change along the curve.
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) True
Explanation
Slope is absolute change, but elasticity measures percentage change. As you move down a straight-line demand curve, the base price and quantity values change, causing elasticity to fall continuously.
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