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Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
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Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Is utility constant along a demand curve?
utility is not constant along the demand curve
3 Why is it difficult to judge the price elasticity of demand if you are merely observing the appearance of a demand curve on a graph?
Because elasticity is changes depending on the price it is evaluated at. This will then mean that elasticity is different at different point on a demand curve. It can also depend on the scale the demand curve is drawn to
When demand curve is rectangular Hyperbola the elasticity of demand will be?
Unitary Elactic
Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Is utility constant along a demand curve?
utility is not constant along the demand curve
What is an isoquant explain it graphically.?
show how the price elasticity of demand is graphically measured along a liner demand curve?
3 Why is it difficult to judge the price elasticity of demand if you are merely observing the appearance of a demand curve on a graph?
Because elasticity is changes depending on the price it is evaluated at. This will then mean that elasticity is different at different point on a demand curve. It can also depend on the scale the demand curve is drawn to
When demand curve is rectangular Hyperbola the elasticity of demand will be?
Unitary Elactic
Why The horizontal axis of a demand curve displays?
elasticity
Show a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
See the related link. A perfectly inelastic demand would be a line straight up and down. That would show that demand is constant regardless of the price.
What is the relation between slope of demand curve and elasticity of demand curve?
They are both used to interpret the demand curve. The slope is just the slope, rise or run, ΔY/ΔX. Elasticity is the percentage change in one variable resulting from a percentage change in another variable. Thus, the price elasticity of demand is the percentage change in quantity demanded of a good resulting from a percent change in its price. (P/Q)( ΔQ/ ΔP) This implies that the elasticity is not constant and the elasticity changes along the curve; elasticity goes from 0 (when price is 0) to infinity (when price is very high). Elasticity is a more useful tool for data analysis because it eliminates units and thus the data is easier to interpret. Elasticity is also useful when large numbers are an obstacle in interpreting data like with wage. It is also useful when the taking the log with a set of data preserves the integrity of the data, since elasticity is the slope of the log of the data points.
A demand curve with Unitary Elasticity at all points is?
Is negatively sloped linear curve
Why is the demand curve not representative of price elasticity?
price elasticities are always negative hence brings ambiguities in the demand curve
Movement along a demand curve?
explain graphically the movement along the demand curve
