Figure 2.1
-Refer to Figure 2.1. At point C, demand is:
A) completely inelastic.
B) inelastic, but not completely inelastic.
C) unit elastic.
D) elastic, but not infinitely elastic.
E) infinitely elastic.

Question

Figure 2.1
-Refer to Figure 2.1. At point C, demand is:
A) completely inelastic. 
B) inelastic, but not completely inelastic. 
C) unit elastic. 
D) elastic, but not infinitely elastic. 
E) infinitely elastic.

Quizplus · Accepted Answer

At point C, the demand curve is tangent to the unit elastic line, which means that the price elasticity of demand is exactly 1, indicating unit elasticity.

Figure 2.1 -Refer to Figure 2.1. at Point C, Demand Is