A demand curve is a straight line sloping downwards at an angle of 45 degrees. We can conclude that its price elasticity is _____.
a)variable
b)constant
c)0.5
d)1.0
B. Constant
To determine the price elasticity of a demand curve, we need information about both the slope of the demand curve and its shape. The price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
In this case, the given information states that the demand curve is a straight line sloping downwards at an angle of 45 degrees. Based on this information, we can conclude that the demand curve has a constant slope.
A straight line demand curve with a constant slope indicates that the price elasticity of demand is constant along the curve. Therefore, the correct answer to the question is:
b) constant.