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kondor19780726 [428]
3 years ago
14

Which of the following statements about price elasticity of demand is​ true?

Physics
1 answer:
STatiana [176]3 years ago
7 0

Answer:

B. The elastic portion of a​ straight-line, downward-sloping demand curve corresponds to the segment above the midpoint.

Explanation:

Elasticity measures the sensitivity of one variable to another. Specifically it is a figure that indicates the percentage variation that a variable will experience in response to a variation of another one percent.

The elasticity of demand measures the reaction of demand when one of the factors that affects it varies.

<u>Elasticity - Price of demand.</u>

easure the sensitivity of the quantity demanded to price variations. It indicates the percentage variation that the quantity demanded of a good will experience if its price rises by 1 percent.

<u> Elastic Demand </u>

The demand quantity is relatively sensitive to price variations, so the total expenditure on the product decreases when the price rises, the price elasticity takes value greater than -∞ but less than -1

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