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16 March, 03:50

Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the ...

a) steeper the demand curve will be.

b) further to the right the demand curve will sit

c) closer to the vertical axis the demand curve will sit

d) flatter the demand curve will be

d) flatter the demand curve will be

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  1. 16 March, 06:27
    0
    Option (d) is correct.

    Explanation:

    Elasticity of demand refers to the responsiveness of the quantity demanded for a commodity with any change in the price of the commodity.

    If the buyers are more responsive to any change in the price then the demand curve for those consumers is flatter.

    It means that if there is a slightly change in the prices then this will result in a large changes in the quantity demanded.

    The more flatter the demand curve will be the higher the slope in absolute terms.

    Elasticity of demand = slope * (P/Q)

    Above equation tells us that as the slope increases, elasticity of demand also increases.
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