The elasticity of demand will change along which kind of demand curve
A)a horizontal demand curve
B)a linear, upward-sloping demand curve
C)a linear, downward-sloping demand curve
D)elasticity of demand remains constant along all demand curves

Question

Quizplus · Accepted Answer

The elasticity of demand will change along a linear, downward-sloping demand curve. As we move down the demand curve, the price becomes lower thus leading to an increase in the quantity demanded. The lower prices make consumers more sensitive to small changes in price, leading to higher price elasticity of demand at lower prices. Similarly, at higher prices, the consumers tend to be less sensitive, resulting in lower price elasticity of demand. Therefore, the elasticity of demand changes along a linear, downward-sloping demand curve.

The Elasticity of Demand Will Change Along Which Kind of Demand