As price decreases and we move down further along a linear demand curve, the price elasticity of demand will:
A) decrease.
B) increase.
C) stay the same.
D) approach infinity.
E) increase or decrease.

Question

Quizplus · Accepted Answer

As price decreases and we move down further along a linear demand curve, the price elasticity of demand will decrease. This is because the percentage change in quantity demanded becomes smaller for each percentage change in price.

As Price Decreases and We Move Down Further Along a Linear