As we move down a straight-line demand curve, the price elasticity becomes
A)larger.
B)smaller.
C)larger and then smaller.
D)smaller and then larger.

Question

Quizplus · Accepted Answer

As we move down a straight-line demand curve, the price elasticity becomes smaller. This is because the slope of a straight-line demand curve is constant, meaning that the change in quantity demanded in response to a change in price becomes smaller as we move down the curve. As a result, the percentage change in quantity demanded becomes smaller relative to the percentage change in price, making the demand curve less elastic.

As We Move Down a Straight-Line Demand Curve, the Price