Moving down a linear demand curve, price elasticity of demand
A) decreases.
B) varies in uncertain ways.
C) increases.
D) is constant.

Question

Quizplus · Accepted Answer

Moving down a linear demand curve, the price elasticity of demand decreases because the proportion of the total area under the demand curve that is above the price line increases, making the quantity demanded less sensitive to price changes.

Moving Down a Linear Demand Curve, Price Elasticity of Demand