Moving Downward Along a Linear (Straight-Line)downward-Sloping Demand Curve,the

question 244

Multiple Choice

Moving downward along a linear (straight-line) downward-sloping demand curve,the

• A) price elasticity of demand does not change.
• B) quantity demanded decreases.
• C) demand becomes more elastic.
• D) demand becomes less elastic.
• E) total revenue never changes.

---

Definitions:

Nonexcludable

A characteristic of a good or service whereby individuals cannot be effectively excluded from using it, often resulting in public goods.

Public Good

A product or service that is made available to all members of society, characterized by non-excludability and non-rivalry in consumption.

Free-Rider Problem

A situation where some individuals consume more than their fair share of a public resource, or do not pay for their share, leading to underproduction or depletion of the resource.

Drop-In-The-Bucket Problem

A problem intrinsic to public goods: The good or service is usually so costly that its provision generally does not depend on whether any single person pays.