At all points below the midpoint of a downward-sloping,linear demand curve for a good,the value of the price elasticity of demand for the good is ________.
A) equal to infinity
B) greater than one, but less than infinity
C) less than one
D) equal to one

Question

Quizplus · Accepted Answer

As we move down the linear demand curve below the midpoint, the quantity demanded increases and the price decreases. This means that the percentage change in quantity demanded is higher than the percentage change in price, leading to a price elasticity of demand that is less than one (inelastic demand). Therefore, the correct choice is C.

At All Points Below the Midpoint of a Downward-Sloping,linear Demand