Question

True or False with Reason:

Price Elasticity of Demand is same for the two commodities x and y if slope of their demand curves are same.

Answer 1

This statement is false.

Explanation:

• Price elasticity = (1 ÷ slope) × P/Q.
• Even if slopes are the same, elasticity also depends on initial price and initial quantity.
• Therefore, two demand curves with the same slope may have different elasticities at different points.