As one moves down a straight-line, down-sloping demand curve, price elasticity will:

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in its price. On a straight-line demand curve, as one moves down the curve from the top left to the bottom right, the demand changes from elastic (where a small change in price leads to a large change in quantity demanded), to unit elastic (where the percentage change in quantity demanded equals the percentage change in price), and finally to inelastic (where a change in price leads to a smaller change in quantity demanded). This reflects the decreasing sensitivity of quantity demanded to price changes as one moves down the demand curve.

As One Moves Down a Straight-Line, Down-Sloping Demand Curve, Price