Question

1.

If demand is inelastic, the percentage change in price is greater than the resulting percentage change in quantity demanded

a. True
b. False

2.

​Price elasticity is 1 at the midpoint of a linear downward-sloping demand curve.

a. True
b. False

Answer 1

1.The statement is true. If the demand is inelastic , than there is greater percentage change in price as compared to quantity demanded. It means that demand is inelastic as it shows there has been change in quantity demanded. It has shown that demand is inelastic as percentage change in quantity demanded is less as change in price. As sensitivity towards price has been changed.

2: The statement is true.As price elasticity is unit elastic as it means that there has been equal percentage change in quantity demanded as compared to percentage change in price. It means that it has linear downward sloping demand curve which shows that constant demand curve.It varies along a different point on curve along a linear demand curve.