When we move upward and to the left along a linear,downward-sloping demand curve,price elasticity of demand
A)first becomes smaller,then larger.
B)always becomes larger.
C)always becomes smaller.
D)first becomes larger,then smaller.

Question

Quizplus · Accepted Answer

When we move upward and to the left along a linear, downward-sloping demand curve, the price elasticity of demand always becomes larger. This is because the slope of the demand curve becomes steeper, resulting in a higher percentage change in quantity demanded for a given percentage change in price.

When We Move Upward and to the Left Along a Linear,downward-Sloping