Along the upper half of a linear demand curve, the price elasticity of demand will be:
A) price inelastic.
B) price elastic.
C) unit price elastic.
D) positive.

Question

Quizplus · Accepted Answer

The upper half of a linear demand curve represents higher prices, and consumers tend to be more sensitive to price changes at higher prices. Therefore, demand is likely to be more elastic in the upper half of the demand curve, making the correct answer B.

Along the Upper Half of a Linear Demand Curve, the Price