What is the difference between elasticity and slope

In fact, there is no connection between the slope and the elasticity of demand. It may happen that the two demand curves may have different slopes but the same elasticity or the two demand curves may have same slopes but different elasticities. In Fig. These two demand curves have the same intercept from the price axis, but they exhibit different slopes. In fact, the curve DA is steeper than DB.

So elasticity of demand at any point on the DA curve should be less than that of the demand curve DB. But this is not so. This can be verified in the following way. Consider two points E and F on the two demand curves having the same price OP. Elasticity of demand at point E on the curve DA is. This suggests that though slope differs, elasticity is the same for the two demand curves at each price. Being parallel, two demand curves AB and CD have the same slopes.

Now consider price OP. Then elasticity of demand at point E on the demand curve AB is. Alternatively, in Fig. Thus, at that point, elasticity of demand is equal to one. So, elasticity at F must be less than one. Article Shared by. Related Articles. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits.

Your Complete Scope This isn't me! What am I? Woodrow Wilson was removed from circulation in It is very easy to say yes. Tell us what you think about Amos WEB. Like what you see? Have suggestions for improvements? Let us know. Perfect elasticity is when a product can only be sold at one price as in the case of a perfectly competitive firm — see our Unit 6.

If the price changes then the quantity demanded changes to zero. They buy nothing at any other price. Perfect inelasticity is when buyers purchase a certain quantity 60 in the graph below , regardless of the price. Perfect elasticity and perfect inelasticity are two extremes.

No product is perfectly elastic or perfectly inelastic. However, some products come close. A medicine that is the difference between life and death is close to perfectly inelastic. If their lives depend on it, buyers are willing to pay just about anything to get it. A product that has many substitutes comes close to being perfectly elastic.