Question

I'm asked to discuss constant and linear elasticity for demand function. I understand the constant is where a demand of a product will have an effect of price. precent change in quantity over percent change in price.
but I can't explain linear elasticity. can someone explain linear elasticity in the most simplistic form?

Answer 1

Constant elasticity in demand function occurs when a price change of one percent results in a quantity change of one percent. That is, the ratio of the percentage change in quantity to the percentage change in price.

But in case of linear elasticity for demand function, the elasticity changes along the demand or when computing elasticity at different points on a demand curve, the slope is constant, that is, it doesn't change but the value for elasticity will change.