Answer the following statements true (T) or false (F)

1) Economists have defined the price elasticity of demand using percentages because percentages do not depend on the unit of measurement.
2) A linear demand curve is a constant elasticity of demand cur
3) For a linear demand curve, the point elasticity of demand will be greater at higher prices relative to lower prices.
4) If a 10 percent increase in the price of a good leads to a 5 percent decrease in the quantity demanded of the good, the price elasticity of demand is elastic.
5) The demand for a generic box of 50 paper clips is likely to be inelastic.


1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) TRUE

Anthropology & Archaeology

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