Moving up a straight-line demand curve, the absolute price elasticity of demand
A) decreases.
B) remains constant.
C) increases.
D) varies in uncertain ways.

Question

Quizplus · Accepted Answer

Moving up a straight-line demand curve (towards higher prices and lower quantities), the absolute price elasticity of demand increases because the percentage change in quantity demanded becomes larger relative to the percentage change in price.

Moving Up a Straight-Line Demand Curve, the Absolute Price Elasticity