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  • Price Elasticity of Demand

Constant Slope and Variable Elasticity on a Linear Demand Curve

While the slope (ΔQ/ΔP) of a linear demand curve is constant, its price elasticity is not. For any linear demand function, the price elasticity of demand varies at different points along the curve. Specifically, as one moves down and to the right along the curve, the price (P) decreases while the quantity demanded (Q) increases. This movement results in a continuous decrease in the price elasticity (ε), meaning demand becomes more inelastic at lower price points.

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Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ

Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ

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