Suppose the demand curve is linear with a slope of -1. If an increase in income

Question

Suppose the demand curve is linear with a slope of -1. If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have

increased in absolute terms.

decreased in absolute terms.

remained unchanged.

increased, decreased, or stayed the same.  It cannot be determined.

increased in absolute terms.

decreased in absolute terms.

remained unchanged.

increased, decreased, or stayed the same.  It cannot be determined.

Explanation / Answer

C)remained unchanged.

ans:
remained unchanged. , as slope of curve did not change so elasticity remains same.

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