At the mid point of as straight line downward sloping demand curve elasticity of demand Ed is ........

At the mid-point of as straight line downward sloping demand curve, elasticity of demand (Ed) is

1/2

- A straight line downward sloping demand curve exhibits varying elasticity at different points.

- Elasticity of demand (Ed) measures how quantity demanded responds to price changes.

- At the midpoint of the demand curve, demand is unitary elastic, meaning Ed = 1.

- Option 1: 2 - Not correct because the midpoint doesn’t represent perfectly elastic demand.

- Option 2: 1/2 - Not correct as elasticity at the midpoint isn’t less than 1.

- Option 3: 1 - Correct! Midpoint has unitary elastic demand.

- Option 4: 4 - Not correct; a high elasticity like 4 suggests perfectly elastic at top part.

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