A straight-line demand curve has an elasticity that becomes smaller as we move from left to right along the schedule.

Question

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A straight-line demand curve has a constant slope, but its elasticity varies along the curve. As we move down and to the right along the curve, the price decreases and the quantity increases, making the percentage change in quantity larger relative to the percentage change in price. This results in a decrease in elasticity (i.e., the demand becomes relatively more inelastic) as we move from left to right along the curve.

A Straight-Line Demand Curve Has an Elasticity That Becomes Smaller