FIGURE 4- 2
-Refer to Figure 4- 2. In part 1 of the figure, the elasticity of demand over the price range $12 to $14 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 $12 to $14 is
A) 0. 
B) less than 1. 
C) 1. 
D) greater than 1. 
E) infinity.

Quizplus · Accepted Answer

Part 1 of the figure shows a relatively steep demand curve, indicating a high degree of price sensitivity among consumers. This implies that a small change in price, such as an increase from $12 to $14, would result in a relatively large decrease in the quantity demanded, suggesting that the elasticity of demand in this range is greater than 1.

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