If a demand curve has more of a slope, is this more or less elsastic than a demand curve with less slope?
Answer:
A demand curve with a steep slope (more vertical), is less elastic than one with a shallow slope.
A steep slope means that the price has to change a lot for people to buy more or less of it (think gas, food, things you're going to buy no matter what, even if you have to cut back on other stuff). Since you will buy them (almost) no matter what, they are said to be inelastic goods.
A shallow slope means that if the price changes only a little you're going to change how much you buy right away. Think of things really expensive or non-necessary things. If you don't really need it you're probably going to think twice if the price goes up, and if you really like it but haven't bought it you may be tempted should the price drop even a little. These are called elastic goods because you respond a lot to price changes.
So in review. Steep = inelastic (not elastic). Shallow = elastic. So a steep slope is less elastic than a shallow one. Enjoy!
think of elasticity as sensitivity to a price change. ask yourself how much does P need to change to get a change in Q. this always seems to help. so we have a steep demand curve it means if I change P by a lot Q still changes by a little( you gotta draw it to prove it to yourself). That means this demand is insensitive to a price change or it is inelastic.
a flat demand curve. if I change P by a little I get a huge change in Q. this demand is very sensitive to a P change or it is very elastic.
slope=gradient of a curve determines the elasticity of a curve.
if a dd curve has more slope,it means that a little change in price causes a huge change in quantity demanded and as such has a high elasticity of demand.
again if a dd curve is very steep,it means that a a huge change in price would cause a small change in quantity demanded and as such has a low elasticity of demand.
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