As we move down a straight-line demand curve, the price elasticity becomes
A)larger.
B)smaller.
C)larger, then smaller.
D)smaller, then larger.

Question

Quizplus · Accepted Answer

As we move down a straight-line demand curve, the price elasticity becomes smaller. This is because, as the price decreases, the quantity demanded increases proportionally less, making the demand curve less responsive to changes in price. Therefore, the elasticity of demand decreases as we move down the demand curve.

As We Move Down a Straight-Line Demand Curve, the Price