Asked by
Kristina Horta
on Oct 26, 2024Verified
On a linear demand curve,the price elasticity of demand at very high prices will be:
A) price-inelastic.
B) price-elastic.
C) price unit-elastic.
D) perfectly price-inelastic.
Price Elasticity
A measure of the responsiveness of demand or supply for a good or service to changes in its price, indicating how quantity demanded or supplied shifts when prices move.
Linear Demand Curve
A graphical representation showing a straight-line relationship between product price and the quantity of the product demanded.
High Prices
The situation where goods or services are offered at elevated prices, often due to high demand, low supply, or premium quality.
- Understand the concept of price elasticity of demand.
Verified Answer
CG
Learning Objectives
- Understand the concept of price elasticity of demand.