Which of the following statements is true about the price elasticity of demand along a downward-sloping linear demand curve? 1 It is unit-elastic throughout the demand curve. 2 It is elastic at high prices and inelastic at low prices. 3 It is inelastic at high prices and elastic at low prices. 4 It is perfectly elastic at very high prices and perfectly inelastic at very low prices.

1 It is unit-elastic throughout the demand curve.

2 It is elastic at high prices and inelastic at low prices.

3 It is inelastic at high prices and elastic at low prices.

4 It is perfectly elastic at very high prices and perfectly inelastic at very low prices.

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