Suppose the price P on a given demand curve results in a price elasticity of demand equal to 1.Any price higher than P will lie on the _______ part of the demand curve,and any price lower than P will lie on the _______ part of the demand curve.
A)elastic;inelastic
B)unitary elastic;inelastic
C)inelastic;elastic
D)elastic;unitary elastic

Question

Quizplus · Accepted Answer

Along a straight-line demand curve,price elasticity at the mid-point is always one.At higher prices,demand is price-elastic,and at lower prices demand is price-inelastic.

Suppose the Price P on a Given Demand Curve Results