For a linear demand curve:        elasticity is constant along the curve.        elasticity is unity at every point on the curve.        demand is elastic at low prices.        demand is elastic at high prices.

A gas station owner observed that when he increased the price of gasoline, his total revenue declines. What does that tell us about the relative elasticity of demand for gas at this gas station? Is it elastic, inelastic, or unit elastic? How can you determine the relative elasticity?

Consider the following demand function. Quantity demanded, Q, is a function of Price, P, such that Q=1/P. The change in the quantity demanded for a change in the What is the price elasticity of demand? price (the slope) is known to be 0 1 8 P 0-1/1/212 P² - 1 P2

Suppose the Constant Elasticity demand function is Q = K ×p15 × p24 × I7. Calculate the own price, cross prices and income elasticity of demand.