As you move down (southeast) along a demand curve, what happens to the elasticity?
A) It becomes larger.
B) It stays constant at zero.
C) It stays constant at one.
D) It becomes smaller.

Question

Quizplus · Accepted Answer

As you move down (southeast) along a demand curve, the price decreases, and quantity demanded increases. This means that the relative price change is becoming smaller, resulting in a smaller change in quantity demanded, making demand relatively inelastic. Therefore, the elasticity becomes smaller.

As You Move Down (Southeast) Along a Demand Curve, What