If the Demand Curve Is Linear and Downward Sloping,which of the Following

question 294

Multiple Choice

If the demand curve is linear and downward sloping,which of the following statements is not correct?

• A)Demand is more elastic on the lower part of the demand curve than on the upper part.
• B)Different pairs of points on the demand curve can result in different values of the price elasticity of demand.
• C)Different pairs of points on the demand curve result in identical values of the slope of the demand curve.
• D)Starting from a point on the upper part of the demand curve,an increase in price leads to a decrease in total revenue.

---

Definitions:

Contestable Market Model

An economic concept that describes a market with free entry and exit, where a company's prices and output levels are constrained by the threat of potential competition.

Price-Leadership Model

A market strategy where a leading firm sets prices that other firms in the industry then follow, influencing the pricing practices across the market.

Cournot Model

An economic model that describes an industry structure in which companies compete on the quantity of output they produce, assuming their rivals' output levels are fixed.

Oligopoly Market

A market structure characterized by a few firms dominating the industry, leading to limited competition.