The following schedule represents a portion of Kate's demand for sub sandwiches. Along this portion of Kate's demand curve for sub sandwiches,price elasticity of demand is:
A) equal to zero.
B) less than one.
C) equal to one.
D) greater than one.

Question

The following schedule represents a portion of Kate's demand for sub sandwiches.  Along this portion of Kate's demand curve for sub sandwiches,price elasticity of demand is:
A) equal to zero. 
B) less than one. 
C) equal to one. 
D) greater than one.

Quizplus · Accepted Answer

The schedule represents a portion of Kate's demand curve for sub sandwiches, and at every point along that curve, the absolute value of the percentage change in quantity demanded is greater than the percentage change in price. This indicates that the price elasticity of demand is greater than one, which means that Kate's demand is relatively responsive to changes in price.

The Following Schedule Represents a Portion of Kate's Demand for Sub