As one moves down along a linear demand curve (i.e. ,from high price,low quantity pairs to low price,high quantity pairs),the demand:
A)becomes more price elastic.
B)increases.
C)decreases.
D)becomes less price elastic.

Question

Quizplus · Accepted Answer

At the top of the demand curve,a one unit change in price will be a relatively small percentage change and a one unit change in quantity,because it is a small quantity to begin with,will be fairly large.A large percentage quantity change relative to a small percentage change in price is elastic.The opposite is true at the bottom of a demand curve.Price is low,so a one-unit change is a fairly large percentage,but quantity is large so a one-unit change is a small percentage.This combination is associated with inelastic demand.

As One Moves Down Along a Linear Demand Curve (I