A linear demand curve will have a price elasticity of demand whose absolute value:
A) increases as price decreases.
B) decreases as price decreases.
C) is constant.
D) is -1 at all prices.

Question

Quizplus · Accepted Answer

On a linear demand curve, the price elasticity of demand decreases in absolute value as price decreases because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

A Linear Demand Curve Will Have a Price Elasticity of Demand