-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) unit 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) unit elastic. 
C) inelastic. 
D) either elastic or inelastic, depending on whether price increases or decreases.

Quizplus · Accepted Answer

Along line segment BC of the demand curve, the demand is elastic because the price elasticity of demand is greater than 1 when moving away from the point where it is exactly 1 (Point C). Elastic demand means that the percentage change in quantity demanded is greater than the percentage change in price.