Exhibit 5-26
-Refer to Exhibit 5-26. Between points B and C price elasticity of demand is:
A) unitary
B) elastic
C) inelastic
D) perfectly elastic
E) perfectly inelastic

Question

Exhibit 5-26 
-Refer to Exhibit 5-26. Between points B and C price elasticity of demand is:
A) unitary 
B) elastic 
C) inelastic 
D) perfectly elastic 
E) perfectly inelastic

Quizplus · Accepted Answer

Between points B and C, price elasticity of demand is inelastic because the percentage change in quantity demanded is less than the percentage change in price. This is indicated by the steepness of the demand curve in this range.

Exhibit 5-26 -Refer to Exhibit 5-26. Between Points B and C Price