An upward movement along a linear demand curve from lower prices to higher prices will result in:
A) constant price elasticity.
B) lower price elasticity.
C) increasing price elasticity.
D) unit price elasticity along the entire curve.

Question

Quizplus · Accepted Answer

As prices increase along a linear demand curve, the quantity demanded tends to decrease. This means that consumers are becoming more sensitive to price changes, resulting in a higher price elasticity of demand. Therefore, there is an increasing price elasticity along the demand curve.

An Upward Movement Along a Linear Demand Curve from Lower