Refer to the table above.Starting at a $1 price,at what price range does demand become elastic?
A) $1-2
B) $2-3
C) $3-4
D) $4-5 At $3-4,the change in quantity is (20 - 30)/(20 + 30)= 0.20 and the change in price is (3 - 4)/(3 + 4)= 0.143.Thus,elasticity is 1.40,which is elastic.

Question

Refer to the table above.Starting at a $1 price,at what price range does demand become elastic?
A) $1-2 
B) $2-3 
C) $3-4 
D) $4-5 At $3-4,the change in quantity is (20 - 30)/(20 + 30)= 0.20 and the change in price is (3 - 4)/(3 + 4)= 0.143.Thus,elasticity is 1.40,which is elastic.

Quizplus · Accepted Answer

According to the table, at a price range of $3-4, the elasticity is 1.40 which is greater than 1, indicating that demand is elastic. This means that a small change in price will result in a relatively larger change in quantity demanded. Therefore, the best choice is option C.

Refer to the Table Above