-Refer to Figure 5.3.At point C the price elasticity of demand is 1.Along line segment BC of the demand curve,the demand is:
A)elastic.
B)unitarily elastic.
C)inelastic.
D)either elastic or inelastic,depending on whether price increases or decreases.

Question

-Refer to Figure 5.3.At point C the price elasticity of demand is 1.Along line segment BC of the demand curve,the demand is:
A)elastic. 
B)unitarily elastic. 
C)inelastic. 
D)either elastic or inelastic,depending on whether price increases or decreases.

Quizplus · Accepted Answer

At point C, the price elasticity of demand is 1, which means it is unitary elastic. Moving along line segment BC, the demand becomes elastic because as you move away from the midpoint of a linear demand curve, elasticity increases.