Figure 7-6

-Refer to Figure 7-6.The inelastic segment of the demand curve
A)is coincident with the horizontal axis.
B)is coincident with the vertical axis.
C)lies below the midpoint of the curve.
D)lies above the midpoint of the curve.

Question

Figure 7-6
 
-Refer to Figure 7-6.The inelastic segment of the demand curve
A)is coincident with the horizontal axis. 
B)is coincident with the vertical axis. 
C)lies below the midpoint of the curve. 
D)lies above the midpoint of the curve.

Quizplus · Accepted Answer

The inelastic segment of the demand curve refers to the portion where changes in price have a relatively small effect on quantity demanded. This segment is usually located in the upper portion of the demand curve and below the midpoint, as shown in Figure 7-6. Therefore, the correct answer is C, which states that the inelastic segment lies below the midpoint of the curve.

Figure 7-6 -Refer to Figure 7-6.The Inelastic Segment of the Demand Curve