Option 4: (C), (B), (D), (A) -> On a linear downward sloping demand curve (moving from left to right, i.e., from high price-low quantity to low price-high quantity), elasticity varies systematically:
• At the upper portion (high price, low quantity): (C) |ed| > 1 - Demand is ELASTIC
• At the midpoint: (B) |ed| = 1 - Demand is UNIT ELASTIC
• At the lower portion (low price, high quantity): (D) |ed| < 1 - Demand is INELASTIC
• At the point where curve meets quantity axis: (A) |ed| approaches 0 - Demand is PERFECTLY INELASTIC
This follows the fundamental principle that elasticity changes continuously along a linear demand curve, starting from highly elastic at the top and becoming increasingly inelastic as we move down the curve. The arrangement (C)→(B)→(D)→(A) correctly represents this progression. -> correct