Question

As we move along a downward sloping straight line demand curve from left (choose the correct alternative) :

(a) remains unchanged

(b) goes on falling

(c) goes on rising

(d) falls initially than rises

Answer 1

As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand goes on falling. Hence, the correct option is (b).

Comments

Why so this happen ?

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The elasticity of demand at any given point is equal to the proportional change in quantity demanded associated with a given proportional change in price.