The price elasticity of demand changes as we move along a
A)horizontal demand curve.
B)vertical demand curve.
C)linear,downward-sloping demand curve.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The price elasticity of demand varies along a linear, downward-sloping demand curve. At the top of the curve, demand is more responsive to changes in price, so elasticity is high. At the bottom of the curve, demand is less responsive and elasticity is low. Therefore, the correct answer is C.

The Price Elasticity of Demand Changes as We Move Along