As we move downward and to the right along a linear,downward-sloping demand curve,
A) slope and elasticity both remain constant.
B) slope changes but elasticity remains constant.
C) slope and elasticity both change.
D) slope remains constant but elasticity changes.

Question

Quizplus · Accepted Answer

When moving downward and to the right along a linear, downward-sloping demand curve, the slope remains constant but the elasticity changes. This is because the slope represents the change in price for a given change in quantity demanded, while elasticity measures the responsiveness of quantity demanded to changes in price. As the quantity demanded decreases along the demand curve, buyers become less sensitive to price changes, leading to a decrease in elasticity.

As We Move Downward and to the Right Along a Linear,downward-Sloping