Figure 6-4

-Refer to Figure 6-4.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 6-4
 
-Refer to Figure 6-4.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 lies below the midpoint of the curve. This is because, in this segment, the percentage change in quantity demanded is relatively less than the percentage change in price, indicating that consumers are less responsive to changes in price. Therefore, a price increase in this segment would not result in a significant decrease in the quantity demanded, leading to a relatively smaller change in total revenue.

Figure 6-4 -Refer to Figure 6-4.The Inelastic Segment of the Demand Curve