Along a downward-sloping straight-line demand curve,
A)demand is perfectly elastic when price is zero.
B)demand is unit elastic at all prices.
C)demand is very inelastic at high prices but becomes more elastic as price decreases.
D)demand is very elastic at high prices but becomes less elastic as price decreases.

Question

Quizplus · Accepted Answer

Along a downward-sloping straight-line demand curve, demand is very elastic at high prices but becomes less elastic as price decreases. This is because at higher prices, consumers are more price sensitive and less willing to purchase the product. As the price decreases, consumers become less price sensitive and more willing to purchase the product, which makes demand less elastic.

Along a Downward-Sloping Straight-Line Demand Curve