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 slope of the demand curve is steep, indicating that a small change in price resulted in a relatively large change in quantity demanded. This suggests that demand is relatively elastic.