Question

the own price elasticity of demand shows a movement along the demand curve

True or Flase

Answer 1

Solution:-True

Explaination:-Given statement is True the own price elasticity of demand shows a movement along the demand curve.The answer depends on the nature of the demand curve itself. On a linear demand curve, elasticity becomes smaller (in absolute value) as we travel downward and to the right.The price elasticity of demand varies between different pairs of points along a linear demand curve. The lower the price and the greater the quantity demanded, the lower the absolute value of the price elasticity of demand.On a linear demand curve, the price elasticity of demand varies depending on the interval over which we are measuring it. For any linear demand curve, the absolute value of the price elasticity of demand will fall as we move down and to the right along the curve.