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

Quizplus · Accepted Answer

Between points C and D, the slope of the demand curve is steep, indicating that a small change in price leads to a relatively smaller change in quantity demanded. This suggests that demand is inelastic.