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Artist 52 [7]
3 years ago
13

The elastic portion of the downward-sloping straight-line demand curve lies:_______

Physics
1 answer:
zepelin [54]3 years ago
7 0

Answer:

c. above the point of unit elasticity.

Explanation:

The elastic portion of the downward-sloping straight-line demand curve lies above the point of unit elasticity. Supply and demand are fundamental concept in economics. The demand curve shows how much of a good people will want at a different prices. The demands curves illustrates the intuition why people purchase a good for a lower price. For the demand curve, the price is always shown on the vertical axis and the demand curve is shown on the horizontal axis. Thus , the quantity demanded increases as the price gets lower. However, the price elasticity of the demand curve varies along the demand curve. This is because there is a key distinction between the gradient and the elasticity. The gradient which is the slope of the line is always the same in the demand curve but elasticity of the demand changes in the percentage of the quantity demand. Therefore, elasticity will vary along the downward-sloping straight - line demand curve. So,  in a downward-sloping straight-line demand curve, the elastic portion is usually above the  point of unit elasticity

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