Why does elasticity vary across a linear demand curve?
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Explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear. Please provide one paragraph response to this question.
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The solution explains one in-depth paragraph why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
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A linear demand curve has the same slope throughout. This is because it is the Change of Quantity in terms of P. That is, the slope is the the change in quantity for each unit decrease in price. The price elasticity of demand is the %change in quantity/%change in price. Say you have a demand curve that is defined as P = 100 - Q. ...
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