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Slope vs elasticity of demand function - Is it the same thing?

Economics Asked by Hunger Learn on March 23, 2021

Do the slope of a linear demand function and the elastisicy of demand coincide when we use specific preferences for pricing. As a paradigm, if we consider the case of CARA normal preferences, by solving the proble of the represenative conumer, we know that the demand function is a linear one. In this case the slope and the elasticity of the demand function coincide, but is this the case in general?

One Answer

No, slope of a demand function is $frac{partial q(p)}{partial p}$ elasticity of demand is $frac{partial q(p)}{partial p} frac{p}{q(p)}$. So they cannot be same except in some special cases.

Correct answer by WilliamT on March 23, 2021

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