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Mairoon Mairoon
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Posts: 850
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6 years ago
In the case of a linear demand curve, demand becomes more price elastic as price increases.
True or False? Provide an explanation.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 92 times
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Replies
wrote...
6 years ago
True ... Because For a demand curve of the form Q = a - bp, elasticity can be written as -b[p/(a - bp)]. As p increases, the term in square brackets increases, making the elasticity increase.
Mairoon Author
wrote...
5 years ago
Great answer, great website
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