QuestionJune 11, 2025

12. For a linear demand curve, the elasticity changes at any point. True False

12. For a linear demand curve, the elasticity changes at any point. True False
12. For a linear demand curve, the elasticity changes at any point.
True
False

Solution
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Answer

True Explanation 1. Define Elasticity Elasticity measures the responsiveness of quantity demanded to a change in price. 2. Understand Linear Demand Curve A linear demand curve has a constant slope but varying elasticity at different points. 3. Analyze Elasticity on Linear Curve **Elasticity = \frac{\text{Percentage change in quantity}}{\text{Percentage change in price}}**. As price and quantity change along the curve, elasticity changes.

Explanation

1. Define Elasticity<br /> Elasticity measures the responsiveness of quantity demanded to a change in price.<br />2. Understand Linear Demand Curve<br /> A linear demand curve has a constant slope but varying elasticity at different points.<br />3. Analyze Elasticity on Linear Curve<br /> **Elasticity = \frac{\text{Percentage change in quantity}}{\text{Percentage change in price}}**. As price and quantity change along the curve, elasticity changes.
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