Chapter 9R, Problem 5MCQ

To determine

The elasticity of demand if demand curve is a straight line with a slope of -1 from the left end to the right.

Explanation of Solution

The demand is unit-elastic if the demand curve is a straight line with a slope of -1 from the left end to the right because unit elastic demand represents that any change in price of goods will lead exactly same or equal change in quantity demanded. Here, the demand curve will be straight from the left to the right with a slope of -1.

Therefore, the correct option is a.

Economics Concept Introduction

Introduction:

Elasticity of demand represents the measure of sensitivity of demand to price that shows how change in price or supply of goods affects the quantity demanded.