-The figure above illustrates a linear demand curve. By comparing the price elasticity in the $2 to $4 price range with the elasticity in the $8 to $10 range, you can conclude that the elasticity is
A) greater in the $8 to $10 range.
B) greater in the $2 to $4 range.
C) the same in both price ranges.
D) greater in the $8 to $10 range when the price rises but greater in the $2 to $4 range when the price falls.

Question

-The figure above illustrates a linear demand curve. By comparing the price elasticity in the $2 to $4 price range with the elasticity in the $8 to $10 range, you can conclude that the elasticity is
A) greater in the $8 to $10 range. 
B) greater in the $2 to $4 range. 
C) the same in both price ranges. 
D) greater in the $8 to $10 range when the price rises but greater in the $2 to $4 range when the price falls.

Quizplus · Accepted Answer

Price elasticity of demand is greater at higher price levels on a linear demand curve, so it is greater in the $8 to $10 range compared to the $2 to $4 range.

-The Figure Above Illustrates a Linear Demand Curve