Asked by Floyd Turner on May 02, 2024
Verified
Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the
A) steeper the demand curve will be.
B) flatter the demand curve will be.
C) further to the right the demand curve will sit.
D) closer to the vertical axis the demand curve will sit.
Elasticity of Demand
An evaluation of how sensitively the demanded amount of a product responds to changes in price.
Demand Curve
An illustration that depicts the connection between how much of a product consumers want to buy and its cost.
- Recognize distinctions among perfectly elastic, perfectly inelastic, elastic, inelastic, and unit elastic demand categories.
- Understand changes in demand and elasticity through graphical illustrations.
Verified Answer
KG
Kewani GebreslassieMay 06, 2024
Final Answer :
B
Explanation :
The more responsive buyers are to a change in price (meaning the demand is more elastic), the flatter the demand curve will be. This indicates that a small change in price leads to a large change in the quantity demanded.
Learning Objectives
- Recognize distinctions among perfectly elastic, perfectly inelastic, elastic, inelastic, and unit elastic demand categories.
- Understand changes in demand and elasticity through graphical illustrations.