Along a straight-line downward-sloping demand curve, elasticity is
A)constant, but its value cannot be determined without measurement
B)constant and equal to an absolute value of one
C)greater at higher prices
D)greater at lower prices
E)greater in the middle

Question

Quizplus · Accepted Answer

Along a straight-line downward-sloping demand curve, price elasticity of demand is greater at higher prices because the percentage change in quantity demanded is larger relative to the percentage change in price at higher price levels.

Along a Straight-Line Downward-Sloping Demand Curve, Elasticity Is