Moving upward and to the left along a downward sloping straight line demand curve, price elasticity...

Moving upward and to the left along a downward sloping straight line demand curve, price elasticity of demand is

	a.	becoming more elastic continuously.
	b.	constant.
	c.	becoming more elastic to the midpoint of the demand curve and then becoming more inelastic.
	d.	becoming more inelastic continuously.

Solutions

Expert Solution

Ans. a) becoming more elastic continuously.

As we move along the demand curve upward and to the left, the elasticity keeps on increasing. The lower portion on the right side is inelastic and as we move upward and to the left, the elasticity keeps on increasing and the demand curve becomes more elastic continuously.

Rahul Sunny answered 1 year ago

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