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

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 3QP: Prove that price elasticity of demand is not the same as the slope of a demand curve.

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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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