Consider the linear demand curve This demand curve will have a price elasticity of demand of -1 when price is equal to:
A)
B)
C)

Question

Consider the linear demand curve  This demand curve will have a price elasticity of demand of -1 when price is equal to:​
A)​ 
B)​ 
C)​

Quizplus · Accepted Answer

When the price elasticity of demand is equal to -1, it means that a 1% change in price causes an equal and opposite 1% change in quantity demanded. Therefore, the correct answer is the price where the percentage change in quantity demanded equals the percentage change in price, which is option B: $9.

Consider the Linear Demand Curve This Demand Curve Will