Let us consider a linear demand curve $q = a - bp$. On the same demand curve, arrange the elasticity in ascending order.

(A) $|e_D| = 1$.
(B) $|e_D| < 1$.
(C) $|e_D| > 1$.
(D) $|e_D| = 0$.

Choose the correct answer from the options given below:

(D), (B), (A), (C)

The correct answer is Option (2) → (D), (B), (A), (C)

For a linear demand curve q=a−b the price elasticity of demand (|e₍D₎|) varies along the curve:

• At the lower end of the demand curve (where price is low and quantity is high), elasticity is less than 1 → inelastic demand.

• At the midpoint, elasticity is equal to 1 → unitary elastic demand.

• At the upper end (where price is high and quantity is low), elasticity is greater than 1 → elastic demand.

• At the point where the demand curve meets the quantity axis, elasticity is zero, because a small change in price causes no change in quantity.