Definition
- Slope
- The slope is the rate of change in units along the curve, the change in price over the change in quantity.
- Not to be confused with: Price elasticity of demand
- The price elasticity of demand is the percentage change in the quantity demanded of a good divided by the percentage change in its price.
Test yourself
What is the difference between slope and price elasticity of demand?
Elasticity divides percentage changes and varies along a straight curve; slope divides raw changes and stays the same along it.