Which Statement About Price Elasticity of Demand Along a Linear

question 39

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)The elasticity of demand is less elastic at lower price.
• E)When an individual buys 4 units of a good his/her elasticity of demand for each unit increases.

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