If the Demand Curve Is a Downward Sloping Straight Line

question 475

Multiple Choice

If the demand curve is a downward sloping straight line, the price elasticity of demand always

• A) increases as the demand curve shifts rightward.
• B) increases as the demand curve shifts leftward.
• C) increases with movements upward along the demand curve.
• D) decreases with movements upward along the demand curve.

---

Definitions:

Hourly Rental Rate

The charge applied for renting a service or product by the hour.

X-box Video Game Systems

A brand of home video game consoles created and owned by Microsoft, known for its advanced graphics and powerful processing capabilities.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received, reflecting the benefit to producers from participating in the market.

Price Discrimination

A strategy where a firm sells the same product at different prices to different groups of consumers, often based on their willingness to pay.