As one moves down along a linear demand curve (i.e., from high price, low quantity pairs to low price, high quantity pairs), demand:
A)becomes more elastic.
B)increases.
C)decreases.
D)becomes less elastic.

Question

Quizplus · Accepted Answer

Consider the formula for the price elasticity of demand: (P/Q)× (1/slope). As you move down along a linear demand curve, slope stays the same but (P/Q)falls, implying that demand is becoming less elastic.

As One Moves Down Along a Linear Demand Curve (I