If the Demand Curve Is a Linear Function of Price

question 26

True/False

If the demand curve is a linear function of price, then the price elasticity of demand is the same at all prices.

---

Definitions:

Private Individuals

Persons or entities that are not part of the government or public sector, typically referring to ordinary citizens or privately owned entities.

Money Supply

The aggregate quantity of monetary assets within an economy at a determined point in time.

Required Reserve Ratio

The fraction of deposits that banks are obligated to hold in reserve, either in their vaults or at the central bank, and not loan out.

Excess Reserves

The funds that banks hold over and above the required reserve ratio set by the central bank.