When moving down along a linear demand curve
A) the elasticity of demand stays the same.
B) the elasticity of demand changes from inelastic to elastic.
C) total revenue always stays the same.
D) the elasticity of demand changes from elastic to inelastic.

Question

Quizplus · Accepted Answer

As you move down a linear demand curve, the price decreases and the quantity demanded increases, which means the percentage change in quantity demanded becomes smaller relative to the percentage change in price. This transition reflects a change from elastic (where percentage changes in quantity demanded are greater than those in price) to inelastic demand (where percentage changes in quantity demanded are less than those in price).

When Moving Down Along a Linear Demand Curve