Question : Demand elasticity at the midpoint of a straight line demand curve:
Option 1: Will be unity
Option 2: Will be zero
Option 3: Will be infinity
Option 4: None of these
Correct Answer: Will be unity
Solution : Elasticity is less than one below the midpoint of a straight line demand curve, and the firm wants to raise prices to increase total revenue. Above the midpoint, elasticity exceeds one, and the firm wishes to lower prices in order to increase total revenue. Elasticity is equal to one, or unit elastic, at the midpoint, E1. As a result, option A is the correct answer.
Question : What will be shape of demand curve:
Question : Assertion(A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope.
Reason(R): The range of demand elasticity on a linear demand curve is zero to infinity.
Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope. Reason (R): The demand elasticity on a linear demand curve ranges from zero to infinity.
Question : If a demand curve is VERTICAL, the following equation represents the own-price elasticity of demand for this good:
Question : Assertion (A): Demand elasticity is greater than one below the demand curve's midpoint on a straight line with a downward slope. Reason (R): The elasticity of demand on a linear demand curve ranges from 0 to infinity.
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