Exhibit 5-11
-Refer to Exhibit 5-11. What can be said of the price elasticity of demand for this good?
A) Demand is inelastic.
B) Demand is unit elastic.
C) Demand is elastic.
D) Demand is perfectly elastic.
E) Not enough information is given to determine elasticity.

Question

Exhibit 5-11 
-Refer to Exhibit 5-11. What can be said of the price elasticity of demand for this good?
A) Demand is inelastic. 
B) Demand is unit elastic. 
C) Demand is elastic. 
D) Demand is perfectly elastic. 
E) Not enough information is given to determine elasticity.

Quizplus · Accepted Answer

The steepness of the demand curve indicates that a small change in price causes a relatively large change in quantity demanded, which suggests that demand is elastic.

Exhibit 5-11 -Refer to Exhibit 5-11. What Can Be Said of the Said