Which Statement About Price Elasticity of Demand Along a Linear

question 265

Multiple Choice

Which statement about price elasticity of demand along a linear demand curve is true?

• A) As the quantity demanded increases, so does the buyer's sensitivity to price.
• B) When price elasticity of demand is equal to 1, consumers are indifferent to subtle price changes.
• C) The ratio of current price to quantity demanded is a good estimate of the elasticity of demand.
• D) As the prices of goods increase, the elasticity of demand increases.
• E) When an individual buys 4 units of a good his/her elasticity of demand for each unit increases.