Asked by Allyson Welch on Jul 26, 2024

verifed

Verified

On a downward-sloping linear demand curve, demand becomes more inelastic as price decreases.

Inelastic Demand

A situation where the demand for a good or service is not significantly affected by changes in its price.

Downward-Sloping

A term often used to describe demand curves, indicating that as the price decreases, the quantity demanded increases.

Linear Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, characterized by a consistent negative slope.

  • Grasp why demand elasticity can vary with the slope of the demand curve.
verifed

Verified Answer

MS
MUHAMMAD SHEHARYAR PERVAIZJul 27, 2024
Final Answer :
True
Explanation :
As price decreases along a downward-sloping linear demand curve, the quantity demanded increases, and the proportionate change in quantity demanded becomes smaller relative to the proportionate change in price, making demand more inelastic.