Question 17 of 20
5.0 Points
On a linear demand curve, demand is ________ at small quantities than it is at the middle of the demand curve.
A. less elastic
B. equally elastic
C. more elastic
D. impossible to tell
c more elastic
more elastic
To determine which option is correct, we need to understand the concept of demand elasticity on a linear demand curve. Demand elasticity refers to how sensitive the quantity demanded of a product is to changes in its price.
On a linear demand curve, the elasticity of demand changes along the curve. At the top of the curve (high quantities), demand tends to be less elastic, meaning that the quantity demanded is not very responsive to changes in price. As we move towards the middle of the demand curve, demand becomes more elastic, indicating that the quantity demanded is more sensitive to changes in price.
Based on this information, we can conclude that demand is less elastic at small quantities than it is at the middle of the demand curve. Therefore, the correct answer is A. less elastic.