Use the following to answer question:
-(Figure: The Linear Demand Curve II)Use Figure: Linear Demand Curve II.At prices greater than $7,demand is _____;at prices below $7,demand is _____;and at $7,demand is _____.
A)elastic;inelastic;unit-elastic
B)inelastic;elastic;unit-elastic
C)unit-elastic;inelastic;elastic
D)equal to 0;elastic;inelastic

Question

Use the following to answer question: 
-(Figure: The Linear Demand Curve II)Use Figure: Linear Demand Curve II.At prices greater than $7,demand is _____;at prices below $7,demand is _____;and at $7,demand is _____.
A)elastic;inelastic;unit-elastic 
B)inelastic;elastic;unit-elastic 
C)unit-elastic;inelastic;elastic 
D)equal to 0;elastic;inelastic

Quizplus · Accepted Answer

At prices greater than $7, demand is elastic because the percentage change in quantity demanded is greater than the percentage change in price. At prices below $7, demand is inelastic because the percentage change in quantity demanded is less than the percentage change in price. At $7, demand is unit-elastic because the percentage change in quantity demanded is equal to the percentage change in price.

Use the Following to Answer Question