Question

Assuming a linear demand curve, higher prices would result in:

Group of answer choices

less price elastic demand.

more price elastic demand.

a decrease in demand.

none of these.

Answer 1

The demand curve follows the law of demand which says that in cetris paribus, price and quantity demanded are inversely related which means if price increases then quantity demanded will decrease and vice versa

Its shape is negative sloping or downward sloping

When there is high price then this will lead to have decrease in the quantity demanded not the demand

An Elastic demand is that type of demand in which even there is a small change in the price can causesheavy change in the quantity demanded

So when there is high price then there will less price elastic demand

The correct answer here is option A