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What are the various kinds of demand elasticity?

Which statement about price elasticity of demand along a linear demand curve is true?

  • a. As the quantity demanded increases, so does the buyer's sensitivity to price. b. When price elasticity of demand is equal to 1, consumers are indifferent to subtle price changes. c. The ratio of current price to quantity demanded is a good estimate of the elasticity of demand. d. As the prices of goods increase, the elasticity of demand increases. e. When an individual buys 4 units of a good his/her elasticity of demand for each unit increases.

  • Answer:

    C. Since it is a linear demand curve, the elasticity doesn't change along the demand curve

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