Figure 4.4
-Refer to Figure 4.4.At the midpoint of the demand curve, in absolute value________.
A)the price elasticity coefficient is at a maximum.
B)the price elasticity coefficient is at a minimum.
C)the price elasticity coefficient is zero.
D)the price elasticity coefficient is one.

Question

Figure 4.4 
-Refer to Figure 4.4.At the midpoint of the demand curve, in absolute value________.
A)the price elasticity coefficient is at a maximum. 
B)the price elasticity coefficient is at a minimum. 
C)the price elasticity coefficient is zero. 
D)the price elasticity coefficient is one.

Quizplus · Accepted Answer

At the midpoint of the demand curve, the price elasticity coefficient is equal to one, which means that a one percent change in price leads to a one percent change in quantity demanded. This is sometimes referred to as unit elasticity.

Figure 4.4 -Refer to Figure 4.4.At the Midpoint of the Demand Curve