Use the figure below to answer the following question.

Figure 4.1.1
-Figure 4.1.1 illustrates a linear demand curve. Comparing the price elasticity in the $2 to $3 price range with the elasticity in the $8 to $9 range, we can conclude
A)that demand is more elastic in the $8 to $9 price range.
B)that demand is more elastic in the $2 to $3 price range.
C)that the price elasticity of demand is the same in both price ranges.
D)nothing without numerical information about quantities.
E)that the price elasticity of demand is zero in both price ranges because the demand curve is a straight-line demand curve.

Question

Use the figure below to answer the following question.
  
Figure 4.1.1
-Figure 4.1.1 illustrates a linear demand curve. Comparing the price elasticity in the $2 to $3 price range with the elasticity in the $8 to $9 range, we can conclude
A)that demand is more elastic in the $8 to $9 price range. 
B)that demand is more elastic in the $2 to $3 price range. 
C)that the price elasticity of demand is the same in both price ranges. 
D)nothing without numerical information about quantities. 
E)that the price elasticity of demand is zero in both price ranges because the demand curve is a straight-line demand curve.

Quizplus · Accepted Answer

Demand is more elastic at higher prices on a linear demand curve, so it is more elastic in the $8 to $9 range than in the $2 to $3 range.

Use the Figure Below to Answer the Following Question