In the case of a straight line demand curve the elasticity of demand is _______ at all the points on the demand curve.

equal

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different

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unitary

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elastic

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Solution

The correct option is B different
In the case of a straight line demand curve, the elasticity of demand is different (lies between zero to infinity) at all the points on the demand curve under point method of elasticity of demand.

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Elasticity of demand is different at different points of a demand curve, unless demand curve is a rectangular hyperbola.

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