FIGURE 4-2
-Refer to Figure 4-2.The price elasticity of demand is continuously increasing as the price falls in diagram(s)
A)1.
B)2.
C)1,2,and 3.
D)2,3,and 4.
E)none of the above

Question

FIGURE 4-2
-Refer to Figure 4-2.The price elasticity of demand is continuously increasing as the price falls in diagram(s)
A)1. 
B)2. 
C)1,2,and 3. 
D)2,3,and 4. 
E)none of the above

Quizplus · Accepted Answer

Price elasticity of demand increases as price falls only if the demand curve is convex to the origin, which is not depicted in any of the diagrams mentioned.

FIGURE 4-2 -Refer to Figure 4-2.The Price Elasticity of Demand Is Continuously