You may have noticed that the market demand curve is always flatter than any individual demand curve. s the market price elasticity of demand also always lower than the individual price elasticity of demand? The market price elasticity O is not always lower because elasticity does not just depend on the slope but also the level of quantity demanded. The latter may be quite small for an individual. is always lower because the percentage change in price for the individual is larger than that for the market as a whole. is not always lower because the percentage change in price for the individual is smaller than that for the market as a whole. O is always lower because the slope of the market demand curve is flatter than any of the individual demand curves that

You may have noticed that the market demand curve is always flatter than any individual demand curve. s the market price elasticity of demand also always lower than the individual price elasticity of demand? The market price elasticity O is not always lower because elasticity does not just depend on the slope but also the level of quantity demanded. The latter may be quite small for an individual. is always lower because the percentage change in price for the individual is larger than that for the market as a whole. is not always lower because the percentage change in price for the individual is smaller than that for the market as a whole. O is always lower because the slope of the market demand curve is flatter than any of the individual demand curves that

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Question

You may have noticed that the market demand curve is always flatter than any individual demand curve.
Is the market price elasticity of demand also always lower than the individual price elasticity of demand?
The market price elasticity
is not always lower because elasticity does not just depend on the slope but also the level of quantity demanded. The
latter may be quite small for an individual.
is always lower because the percentage change in price for the individual is larger than that for the market as a whole.
is not always lower because the percentage change in price for the individual is smaller than that for the market as a
whole.
O is always lower because the slope of the market demand curve is flatter than any of the individual demand curves that
compose it.

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