The demand curve for good X is a straight downward-sloping line. It follows that the demand for good X is ________ elastic at __________ prices than at __________ prices.
A)less; lower; higher
B)more; lower; higher
C)more; lower; lower
D)less; higher; lower

Question

Quizplus · Accepted Answer

The demand for a good is less elastic at lower prices because consumers are less responsive to price changes when the good is cheaper. Conversely, demand is more elastic at higher prices as consumers are more responsive to price changes when the good is more expensive.

The Demand Curve for Good X Is a Straight Downward-Sloping