Along a straight-line demand curve,the elasticity of demand:
A)is approximated by the slope of the curve.
B)is constant at every point on the curve.
C)is less elastic than along a non-linear demand curve.
D)is equal to one.
E)becomes more inelastic as price falls.

Question

Quizplus · Accepted Answer

Along a straight-line demand curve, the elasticity of demand varies at different points. It becomes more inelastic as price falls because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

Along a Straight-Line Demand Curve,the Elasticity of Demand