Figure 4.1.4
-Figure 4.1.4 shows the demand curve for pizza.At what price is the price elasticity of demand equal to 1?
A)$12.50
B)$15.00
C)$10.00
D)$25.00
E)zero

Question

Figure 4.1.4
-Figure 4.1.4 shows the demand curve for pizza.At what price is the price elasticity of demand equal to 1?
A)$12.50 
B)$15.00 
C)$10.00 
D)$25.00 
E)zero

Quizplus · Accepted Answer

At a price of $12.50, the price elasticity of demand is equal to 1, indicating unit elasticity where the percentage change in quantity demanded is equal to the percentage change in price.

Figure 4.1.4 -Figure 4.1.4 Shows the Demand Curve for Pizza.At What Price