The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Price elasticity of demand measured over a range of prices and quantities along the demand curve is _____.
A)point elasticity
B)arc elasticity
C)income elasticity
D)cross elasticity
E)price elasticity

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Price elasticity of demand measured over a range of prices and quantities along the demand curve is _____.
A)point elasticity 
B)arc elasticity 
C)income elasticity 
D)cross elasticity 
E)price elasticity

Quizplus · Accepted Answer

The question is asking for the type of elasticity that is measured over a range of prices and quantities along the demand curve. This is known as arc elasticity. Point elasticity is measured at a specific point on the demand curve, income elasticity measures the responsiveness of demand to changes in income, cross elasticity measures the responsiveness of demand for one product to changes in the price of another product, and price elasticity is a general term used to refer to any measurement of the responsiveness of demand to changes in price.

The Figure Given Below Shows the Demand Curves for Five