126k views
2 votes
Assume that the price elasticity of demand for good X is constant...

Options:
A. the demand curve is elastic
B. the demand curve is inelastic
C. the demand curve is perfectly elastic
D. the demand curve is unit elastic

User Agenis
by
7.6k points

1 Answer

3 votes

Final answer:

When the price elasticity of demand for a good is constant, the demand curve is elastic.

Step-by-step explanation:

The answer to the question is option A. When the price elasticity of demand for a good is constant, it indicates that the demand curve is elastic. Elastic demand means that the quantity demanded is highly responsive to changes in price. This means that a small change in price will result in a relatively larger change in quantity demanded.

User Quentin Morrier
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories