In this range,the demand for wheat is
A) perfectly elastic.
B) of unit elasticity.
C) price inelastic.
D) arc elastic.
E) invariant.

Question

Quizplus · Accepted Answer

If the demand for wheat in this range is not affected by changes in price, it is considered to be price inelastic. This could occur in situations where wheat is a necessity, has few substitutes, or is a small portion of a consumer's budget. Perfectly elastic demand would mean that any change in price would result in an infinite change in quantity demanded, which is highly unlikely. Unit elasticity means that changes in price result in proportional changes in quantity demanded, which is also unlikely in this scenario. Arc elasticity refers to elasticity measured over a range of prices, rather than at a single point, and invariant demand means that there is no relationship between price and quantity demanded. Neither of these options seem to fit the scenario given.

In This Range,the Demand for Wheat Is