As we move upward along a linear demand curve, the price elasticity of the demand
A) increases.
B) decreases.
C) remains the same.
D) increases up to the midpoint and then decreases.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. As we move upward along a linear demand curve, the price becomes higher and the quantity demanded becomes lower. This means that a small percentage change in price will result in a larger percentage change in quantity demanded, indicating that the price elasticity of demand increases as we move up the curve.

As We Move Upward Along a Linear Demand Curve, the Price