Figure 6-4
-Refer to Figure 6-4. At the midpoint of the demand curve, in absolute value,
A) the price elasticity coefficient is at a maximum.
B) the price elasticity coefficient is at a minimum.
C) the price elasticity coefficient is zero.
D) the price elasticity coefficient is one.

Question

Figure 6-4 
-Refer to Figure 6-4. At the midpoint of the demand curve, in absolute value,
A) the price elasticity coefficient is at a maximum. 
B) the price elasticity coefficient is at a minimum. 
C) the price elasticity coefficient is zero. 
D) the price elasticity coefficient is one.

Quizplus · Accepted Answer

At the midpoint of the demand curve, in absolute value, the price elasticity coefficient is one. This means that a one percent change in price will result in a one percent change in quantity demanded. This is the point where the demand curve is most responsive to changes in price.

Figure 6-4 -Refer to Figure 6-4. at the Midpoint of the Demand