The elasticity of demand at the mid point on a straight demand line is

The correct answer is Equal to one.

Key PointsElasticity of Demand:

• The responsiveness of the quantity required of a good to changes in one of the variables on which demand depends is known as elasticity of demand.
• In other words, it is the ratio of the percentage change in the quantity demanded to the percentage change in one of the factors that affect demand.

Important Points

• If the demand curve is linear (straight line), it has a unitary elasticity at the midpoint.
• The total revenue is maximum at this point.
• Any point above the midpoint has elasticity greater than 1, (Ed > 1), and any point below the midpoint has elasticity lower than 1.