The value of the price elasticity of demand for a straight-line demand curve starts with low elasticity values at high prices and has high elasticity values at low prices.

Question

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The value of the price elasticity of demand for a straight-line demand curve actually starts with high elasticity values at high prices and becomes less elastic (low elasticity values) as prices decrease. This is because elasticity measures the percentage change in quantity demanded relative to a percentage change in price, and the impact of price changes on quantity demanded is greater at higher prices on a linear demand curve.

The Value of the Price Elasticity of Demand for a Straight-Line