Suppose a Good Has a Downward-Sloping, Straight-Line Demand Curve

question 45

Multiple Choice

Suppose a good has a downward-sloping, straight-line demand curve. If the price elasticity of demand is 2.5 when the price is $10 per unit, then the price elasticity of demand when the price is $7 per unit could be

• A) approaching infinity.
• B) 2.7.
• C) 2.5.
• D) 1.7.

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Definitions:

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