Movement along demand curve alters PED numerically

Steps:

• Identify points X and Y on a linear demand curve: X at higher price (elastic, PED < -1), Y at lower price (inelastic, |PED| < 1).
• Movement from X to Y decreases price, increases quantity demanded.
• PED numerical value rises (becomes less negative) due to steeper slope relative to midpoint.
• At Y, |PED| < 1, confirming inelastic demand.

Why B is correct:

• PED is negative; from elastic (e.g., -2) to inelastic (e.g., -0.5) means numerical value rises while remaining inelastic, per the formula |PED| = |(ΔQ/Q)/(ΔP/P)| decreasing in magnitude down the curve.

Why the others are wrong:

• A: Numerical value rises, not falls; at Y it's inelastic, not elastic.
• C: PED changes along the curve, not unchanged; Y is not unitary (|PED| ≠ 1).

Final answer: B