FIGURE 4- 2
-Refer to Figure 4- 2. The price elasticity of demand is continuously increasing as the price falls in part(s)
A) 1.
B) 2.
C) 1, 2, and 3.
D) 2, 3, and 4.
E) none of the above

Question

FIGURE 4- 2
-Refer to Figure 4- 2. The price elasticity of demand is continuously increasing as the price falls in part(s)
A) 1. 
B) 2. 
C) 1, 2, and 3. 
D) 2, 3, and 4. 
E) none of the above

Quizplus · Accepted Answer

Price elasticity of demand typically decreases as price falls because the percentage change in quantity demanded becomes smaller relative to the percentage change in price.

FIGURE 4- 2 -Refer to Figure 4- 2. the Price Elasticity of Demand