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Unformatted text preview: change. B) Inelastic Demand The demand curve has a steep slope This means that as price changes, demand changes by a lesser amount. C) Unitary Elastic Demand The demand has an even slope This means as price changes, demand changes by the same percentage. D) Elastic Demand The demand has a flat slope This means as price changes, demand changes by a higher percentage. Perfectly elastic demand The demand curve is horizontal This means if price increases, demand will be zero. If price decreases, quantity demanded is infinite. As a memory trick: Perfectly i nelastic curves look like the letter I. obviously if it does not look like the letter I, then it is not inelastic....
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This note was uploaded on 10/17/2011 for the course ECON 2023 taught by Professor Unknown during the Fall '05 term at Arkansas.
- Fall '05