The following graph depicts demand.
Refer to the figure above.At point A,demand is:
A)price inelastic.
B)price elastic.
C)unitary elastic.
D)perfectly price elastic.

Name: The following graph depicts demand. Refer to the figure above.At point A,demand is: A)price inelastic. B)price elastic. C)unitary elastic. D)perfectly price elastic.
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Question

The following graph depicts demand. 
Refer to the figure above.At point A,demand is:
A)price inelastic. 
B)price elastic. 
C)unitary elastic. 
D)perfectly price elastic.

Quizplus · Accepted Answer

To find elasticity,use the formula (price/quantity)/slope.Here it is 5/4 × 2 = 5/2.(2 is the reciprocal of 0.5. )This is greater than one,so it is price elastic.

The Following Graph Depicts Demand