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When moving down along a straight-line demand curve:

a) the elasticity of demand stays the same.
b) the elasticity of demand changes from inelastic to elastic.
c) total revenue always stays the same.
d) the elasticity of demand changes from elastic to inelastic.

User Natacado
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Answer: The correct answer is "d) the elasticity of demand changes from elastic to inelastic.".

Explanation: In a straight-line demand curve, elasticity decreases as the price decreases and the quantity demanded increases, demand has unit elasticity at the midpoint of the demand curve, above the midpoint, demand is elastic (elasticity is greater than one), below the midpoint the demand is inelastic (elasticity is less than one).

User Nataraj KR
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