Refer to the information provided in Figure 5.7 below to answer the question(s) that follow. Figure 5.7
The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.
-Refer to Figure 5.7. The demand for pumpkins from the equilibrium point before the imposition of the tax to the equilibrium point after the imposition of the tax is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.

Question

Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.  Figure 5.7
The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.
-Refer to Figure 5.7. The demand for pumpkins from the equilibrium point before the imposition of the tax to the equilibrium point after the imposition of the tax is
A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly elastic.

Quizplus · Accepted Answer

The demand for pumpkins is elastic because the percentage change in quantity demanded is greater than the percentage change in price.

Refer to the Information Provided in Figure 5