FIGURE 4- 1
-Refer to Figure 4- 1, which shows two demand curves, one linear and the other a rectangular hyperbola. In diagram 1, the price elasticity of demand

Question

Quizplus · Accepted Answer

In a linear demand curve, the price elasticity of demand decreases as you move down the curve. Therefore, at point A (higher price, lower quantity), the elasticity is greater than at point C (lower price, higher quantity).

FIGURE 4- 1 -Refer to Figure 4- 1, Which Shows Two Demand Curves