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Figure: The Demand Curve for Oil
-(Figure: The Demand Curve for Oil) Look at the figure The Demand Curve for Oil. The price elasticity of demand between $20 and $21 is _____, since the price elasticity is _____.
A) price-elastic; less than 1.
B) price unit-elastic; equal to 1.
C) price-elastic; a negative number.
D) price-inelastic; less than 1.

Question

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Figure: The Demand Curve for Oil 
-(Figure: The Demand Curve for Oil) Look at the figure The Demand Curve for Oil. The price elasticity of demand between $20 and $21 is _____, since the price elasticity is _____.
A) price-elastic; less than 1. 
B) price unit-elastic; equal to 1. 
C) price-elastic; a negative number. 
D) price-inelastic; less than 1.

Quizplus · Accepted Answer

The price elasticity of demand is less than 1, indicating that the demand is price-inelastic between $20 and $21.

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