Elasticity varies along a straight-line demand curve by being different at different points. At the top of the curve, elasticity is more elastic, meaning small changes in price lead to larger changes in quantity demanded. At the bottom of the curve, elasticity is less elastic, meaning changes in price have less impact on quantity demanded.
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
Because elasticity is changes depending on the price it is evaluated at. This will then mean that elasticity is different at different point on a demand curve. It can also depend on the scale the demand curve is drawn to
Unitary Elactic
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
show how the price elasticity of demand is graphically measured along a liner demand curve?
Because elasticity is changes depending on the price it is evaluated at. This will then mean that elasticity is different at different point on a demand curve. It can also depend on the scale the demand curve is drawn to
Unitary Elactic
elasticity
Is negatively sloped linear curve
price elasticities are always negative hence brings ambiguities in the demand curve
explain graphically the movement along the demand curve
Elasticity is not solely determined by the slope of the demand curve because elasticity also considers the responsiveness of quantity demanded to price changes. The slope of the demand curve only shows the relationship between price and quantity demanded, but elasticity takes into account the percentage change in quantity demanded relative to the percentage change in price. This means that elasticity provides a more accurate measure of how sensitive consumers are to price changes compared to just looking at the slope of the demand curve.
The equilibrium of a firm depends with the elasticity of a demand curve.