When measured along a linear downward-sloping demand curve,the price elasticity
A) remains constant and is greater than one.
B) remains constant and is less than one.
C) increases in absolute value from left to right.
D) decreases in absolute value from left to right.

Question

Quizplus · Accepted Answer

The price elasticity of demand decreases in absolute value as one moves down a linear demand curve because the percentage change in quantity demanded becomes larger relative to the percentage change in price, making the elasticity measure (which is the ratio of these percentage changes) smaller in absolute value.

When Measured Along a Linear Downward-Sloping Demand Curve,the Price Elasticity