-In the $80 to $40 price range in Figure 20.1,demand is
A)Perfectly price-elastic.
B)Price-inelastic.
C)Unitary elastic.

Question

-In the $80 to $40 price range in Figure 20.1,demand is
A)Perfectly price-elastic. 
B)Price-inelastic. 
C)Unitary elastic.

Quizplus · Accepted Answer

In the $80 to $40 price range, the graph shows that a decrease in price (from $80 to $40) leads to a proportionately smaller increase in quantity demanded. This indicates that the demand is relatively insensitive to price changes, making it price-inelastic.

-In the $80 to $40 Price Range in Figure 20