Along a straight-line demand curve, the elasticity of demand:
A) is approximated by the slope of the curve.
B) is constant at every point on the curve.
C) is less elastic than along a non-linear demand curve.
D) becomes more inelastic as price falls.

Question

Quizplus · Accepted Answer

Along a straight-line demand curve, the elasticity of demand becomes more inelastic as price falls because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

Along a Straight-Line Demand Curve, the Elasticity of Demand