As We Move Down a Straight-Line Demand Curve, the Price

question 81

Multiple Choice

As we move down a straight-line demand curve, the price elasticity becomes

• A)larger.
• B)smaller.
• C)larger, then smaller.
• D)smaller, then larger.

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Definitions:

Trading Possibilities Line

A graphical representation showing the combinations of goods that a country can produce or trade given the resource constraints and technology.

International Trade

The exchange of goods and services between countries.

Domestic Production

It refers to the total value of all goods and services produced within a country's borders in a specific time period.

Domestic Export Sector

The part of a country's economy that is focused on producing goods and services for exportation to other countries.