As price decreases and we move down further along a linear demand curve, the price elasticity of demand will:
A) decrease.
B) increase.
C) stay the same.
D) approach infinity.

Question

Quizplus · Accepted Answer

As we move down a linear demand curve, the quantity demanded increases for each unit decrease in price, but the percentage change in quantity demanded compared to the percentage change in price becomes smaller. This means the price elasticity of demand (which measures the responsiveness of quantity demanded to a change in price) decreases.

As Price Decreases and We Move Down Further Along a Linear