When We Move Upward and to the Left Along a Linear,downward-Sloping

question 287

Multiple Choice

When we move upward and to the left along a linear,downward-sloping demand curve,price elasticity of demand

• A)first becomes smaller,then larger.
• B)always becomes larger.
• C)always becomes smaller.
• D)first becomes larger,then smaller.

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Definitions:

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded at those prices, usually downward sloping.

Marginal Revenue

The change in total revenue that results from the sale of 1 additional unit of a firm’s product; equal to the change in total revenue divided by the change in the quantity of the product sold.

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical.

Product Differentiation

The marketing process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.