The price elasticity is defined as the quantity of the product demanded or purchased more than the price change. Thus, the product is then termed elastic.
The value of price elasticity of demand is not equal to the slope of the demand curve.
The given statement is true.
The price elasticity refers to the percentage change in the demand and price, whereas the slope considers the exact change in absolute terms.
The price elasticity can be expressed as:
[tex]\text{Price Elastcity}&= \dfrac{1}{\text{slope}}\times \dfrac{\text{original price}}{\text{original quantity demanded}}[/tex]
The above formula shows that both might be equal but are not exactly the same.
For instance, if the slope original price and original quantity demand are 1, then the Price elasticity will be 1.
Therefore, the given statement is true.
To know more about price elasticity, refer to the following link:
https://brainly.com/question/20630691
