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Figure 4-2
-Refer again to Figure 4-2.At what point along the demand curve DD is price elasticity exactly 1?
A)P = 5, Q = 40
B)P = 4, Q = 60
C)P = 3,Q = 80
D)P = 2, Q = 100
E)P = 3.50, Q = 70

Question

Use the following to answer questions :
Figure 4-2 
-Refer again to Figure 4-2.At what point along the demand curve DD is price elasticity exactly 1?
A)P = 5, Q = 40 
B)P = 4, Q = 60 
C)P = 3,Q = 80 
D)P = 2, Q = 100 
E)P = 3.50, Q = 70

Quizplus · Accepted Answer

At point E (P = 3.50, Q = 70), the demand curve DD has a unit elasticity of 1. This means that a 1% change in the price of the product results in a 1% change in the quantity demanded.

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