) Refer to Exhibit 511.What can be said of the price elasticity of demand forthis good?
A)Demand is inelastic.
B)Demand is unit elastic.
C)Demand is elastic.
D)Demand is perfectly elastic.
E)Not enough information is given to determine elasticity.

Question

)  Refer to Exhibit 5­11.What can be said of the price elasticity of demand forthis good?
A)Demand is inelastic. 
B)Demand is unit elastic. 
C)Demand is elastic. 
D)Demand is perfectly elastic. 
E)Not enough information is given to determine elasticity.

Quizplus · Accepted Answer

The slope of the demand curve indicates that a 1% increase in price results in a greater than 1% decrease in quantity demanded. This suggests that demand is elastic, meaning that consumers are highly responsive to changes in price.

) Refer to Exhibit 5­11

) Refer to Exhibit 511