Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
There are two special cases in which linear demand curves have the same elasticity at all points: [...]
vertical demand curves and horizontal demand curves.

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
There are two special cases in which linear demand curves have the same elasticity at all points: [...]
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
There are two special cases in which linear demand curves have the same elasticity at all points: [...]
vertical demand curves and horizontal demand curves.
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There are two special cases in which linear demand curves have the same elasticity at all points: vertical demand curves and horizontal demand curves.

#### Original toplevel document

4.1. Own-Price Elasticity of Demand
reason for this is that we typically use the original value as the base, or denominator, for calculating percentages.) In our example, then, the arc elasticity of demand would be: E=ΔQQavgΔPPavg=−4009,00015.5=−0.244 <span>There are two special cases in which linear demand curves have the same elasticity at all points: vertical demand curves and horizontal demand curves. Consider a vertical demand curve, as in Exhibit 21 Panel A, and a horizontal demand curve, as in Panel B. In the first case, the quantity demanded is the same, regardless of price. Cert

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