Which statement about price elasticity of demand along a linear demand curve is true?
A)As the quantity demanded increases, so does the buyer's sensitivity to price.
B)When price elasticity of demand is equal to 1, consumers are indifferent to subtle price changes.
C)The ratio of current price to quantity demanded is a good estimate of the elasticity of demand.
D)The elasticity of demand is less elastic at lower price.
E)When an individual buys 4 units of a good his/her elasticity of demand for each unit increases.

Question

Quizplus · Accepted Answer

As price decreases along a linear demand curve, the demand becomes less elastic because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

Which Statement About Price Elasticity of Demand Along a Linear