Identify the Correct Statement About the Price Elasticity of Demand

Multiple Choice

Identify the correct statement about the price elasticity of demand and the demand curve for a good.

A) The slope of the demand curve is always equal to the elasticity of demand.
B) Moving down along a downward-sloping, linear demand curve, the elasticity of demand increases.
C) The flatter the demand curve passing through a given point, the more elastic the demand.
D) The steeper the demand curve passing through a given point, the more elastic the demand.
E) The price elasticity of demand is, in theory, always positive.