Question

15. How does the price elasticity of demand change as you move down along a straight line demand curve? a. it becomes larger in magnitude. b. it becomes smaller in magnitude. c. it doesn't change in magnitude. d. vou can't tell without more information. 16. Quasi-concavity of utility functions insures that with only two goods, these goods must be a. gross substitutes. b. gross complements. c. net substitutes d. net complements. 17. If goods x and y are substitutes, then the cross price elasticity of demand between them will be a. positive. b. negative. C. zero d. infinity. 18. For the "Composite Commodity Theorem" to hold, all goods in the composite must a. have constant prices. b. be used in fixed proportions. c. be net complements. d. none of the above. 19. If a fair game is played many times the monetary losses or gains will a. be negative. b. be positive. c. be zero. d. . may be any of the above

Answer 1

Hi,

As per HOMEWORKLIB RULES, We are required to answer only the first question. Kindly re-post rest of the questions as an individual question. We are bound by the rules. Thanks.

Answer 15: As we move downward along the linear demand curve, the price elasticity of demand becomes smaller in magnitude.

The following picture shows the elasticity along the demand curve.