FIGURE 4- 2
-Refer to Figure 4- 2. In part 1 of the figure, the elasticity of demand over the price range $14 to $16 is
A) 0.
B) less than 1.
C) 1.
D) greater than 1.
E) infinity.

Question

FIGURE 4- 2
-Refer to Figure 4- 2. In part 1 of the figure, the elasticity of demand over the price range $14 to $16 is
A) 0. 
B) less than 1. 
C) 1. 
D) greater than 1. 
E) infinity.

Quizplus · Accepted Answer

The elasticity of demand over the price range $14 to $16 is greater than 1, indicating that demand is elastic in this range. This means that the percentage change in quantity demanded is greater than the percentage change in price.

FIGURE 4- 2 -Refer to Figure 4- 2. in Part 1 of the 1