If the demand curve for oranges is a downward sloping straight line, the price elasticity of demand will increase the
A) higher the price of oranges.
B) higher the price of other fruits.
C) higher the income level of consumers.
D) lower the price of oranges.

Question

Quizplus · Accepted Answer

As the price of oranges increases along a downward sloping demand curve, the price elasticity of demand becomes more elastic because the percentage change in quantity demanded becomes larger relative to the percentage change in price.

If the Demand Curve for Oranges Is a Downward Sloping