Consider the demand curve above.If area 0ABC is smaller than area 0DEF,we may conclude that demand in this range is:
A) price-inelastic.
B) income-inelastic.
C) price-elastic.
D) income-elastic.

Question

Consider the demand curve above.If area 0ABC is smaller than area 0DEF,we may conclude that demand in this range is:
A) price-inelastic. 
B) income-inelastic. 
C) price-elastic. 
D) income-elastic.

Quizplus · Accepted Answer

If area 0ABC is smaller than area 0DEF, it implies that a certain change in price results in a relatively larger change in quantity demanded. This indicates price elasticity of demand, making choice C the correct answer.

Consider the Demand Curve Above