A linear demand function exhibits:
A) constant demand elasticity.
B) more elastic demand as output increases.
C) less elastic demand as output increases.
D) insufficient information to determine.

Question

Quizplus · Accepted Answer

A linear demand function typically shows less elastic demand as output increases because the slope of the demand curve is constant, but the percentage change in quantity demanded relative to the percentage change in price (elasticity) decreases as one moves down the curve.

A Linear Demand Function Exhibits