If the Demand for a good in linear in its price, then ... the elasticity of Demand is larger (in absolute value) for low prices the elasticity of Demand is larger (in absolute value) for high prices. the elasticity of Demand is the same along the Demand function irrespective of the price. This is what "linear in price" means.

If the Demand for a good in linear in its price, then ... the elasticity of Demand is larger (in absolute value) for low prices the elasticity of Demand is larger (in absolute value) for high prices. the elasticity of Demand is the same along the Demand function irrespective of the price. This is what "linear in price" means.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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