Figure 5-3

-Refer to Figure 5-3.What does the point on the demand curve labelled B represent
A)the elastic section of the demand curve
B)the inelastic section of the demand curve
C)the unit elastic section of the demand curve
D)the perfectly elastic section of the demand curve

Question

Figure 5-3
 
-Refer to Figure 5-3.What does the point on the demand curve labelled B represent
A)the elastic section of the demand curve 
B)the inelastic section of the demand curve 
C)the unit elastic section of the demand curve 
D)the perfectly elastic section of the demand curve

Quizplus · Accepted Answer

The point on the demand curve labelled B represents the unit elastic section of the demand curve. This is because the price and quantity demanded have a proportional relationship, with the elasticity of demand being equal to 1. At this point, a change in price will result in an equal change in quantity demanded, resulting in a constant total revenue.

Figure 5-3 -Refer to Figure 5-3.What Does the Point on the Demand