Figure 6-4

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

Question

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

Quizplus · Accepted Answer

The absolute value of the price elasticity of demand at the midpoint of the demand curve is always one, which means that a 1% change in price will result in a 1% change in quantity demanded. This is because at the midpoint of the demand curve, the percentage change in price and quantity demanded are equal, resulting in a unitary elasticity of demand.

Figure 6-4 -Refer to Figure 6-4.The Absolute Value of the Price Elasticity