FIGURE 4- 2
-Refer to Figure 4- 2. Demand is inelastic
A) over section (b) of the demand curve in diagram 1.
B) over section (a) of the demand curve in diagram 1.
C) at the midpoint between sections (a) and (b) of the demand curve in diagram 1.
D) over the entire demand curve in diagram 3.
E) over the entire demand curve in diagram 1.

Question

FIGURE 4- 2
-Refer to Figure 4- 2. Demand is inelastic
A) over section (b) of the demand curve in diagram 1. 
B) over section (a) of the demand curve in diagram 1. 
C) at the midpoint between sections (a) and (b) of the demand curve in diagram 1. 
D) over the entire demand curve in diagram 3. 
E) over the entire demand curve in diagram 1.

Quizplus · Accepted Answer

Demand is inelastic over section (b) of the demand curve in diagram 1 because inelastic demand occurs when the percentage change in quantity demanded is less than the percentage change in price, typically at lower price levels on a linear demand curve.

FIGURE 4- 2 -Refer to Figure 4- 2. Demand Is Inelastic