The price elasticity of a demand curve with a constant slope: A) is equal to the

Question

The price elasticity of a demand curve with a constant slope:
A) is equal to the slope.
B) is greater than the slope.
C) is less than the slope.
D) increases in absolute value as the price rises.


If the price of a good is increased by 15 percent and the quantity demanded falls by 20 percent, the price elasticity of demand is:
A) price elastic.
B) price inelastic.
C) unit price elastic.
D) normal.


When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be:
A) price inelastic.
B) unit price elastic.
C) price elastic.
D) perfectly inelastic.

Explanation / Answer

The price elasticity of a demand curve with a constant slope:
D) increases in absolute value as the price rises.

If the price of a good is increased by 15 percent and the quantity demanded falls by 20 percent, the price elasticity of demand is:
A) price elastic


When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be:
C) price elastic

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