Elasticity Along Demand Curve

• Price elasticity of demand varies along the demand curve.
• The gradient of the demand curve is always the same, but elasticity of demand is not the gradient.
• The top half of the demand curve is always the elastic section of the demand curve, and the bottom half is always the inelastic section of the demand curve.
• The midpoint of the demand curve, represented by the quantity of five, is always unit elastic.
• The bottom half of the demand curve is always the inelastic section of the demand curve.
• If total revenue is maximized at unit elasticity, it means that there is no longer elastic or inelastic demand taking place.
• The top of the demand curve represents perfectly elastic demand.
• If total revenue is maximized at unit elasticity, it means that there
• The bottom of the demand curve represents perfectly inelastic demand.
• A price reduction from two pounds to one pound results in an increase in quantity demanded from eight to nine, representing a 12.5% increase in quantity demanded.
• For the bottom half of the demand curve, the percentage changes in quantity demanded are always less than the percentage changes in price, resulting in figures less than one.
• A price increase from zero to one results in a decrease in quantity demanded from 10 to 9, representing a 10% reduction in quantity demanded.
• For the top half of the demand curve, the percentage changes in quantity demanded are always greater than the percentage changes in price, resulting in elastic figures.