Figure 7-9
-At a price of $10, the price elasticity of the demand curve depicted in Figure 7-9 is
A) positive.
B) approximately equal to −0.1.
C) approximately equal to −1.
D) approximately equal to −2.

Question

Figure 7-9 
-At a price of $10, the price elasticity of the demand curve depicted in Figure 7-9 is
A) positive. 
B) approximately equal to −0.1. 
C) approximately equal to −1. 
D) approximately equal to −2.

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. An elasticity of -1 indicates unitary elasticity, where the percentage change in quantity demanded is equal to the percentage change in price.

Figure 7-9 -At a Price of $10, the Price Elasticity of the Elasticity