Exhibit 5-12
-Refer to Exhibit 5-12. What can be said of the price elasticity of demand for this good?
A) Demand is inelastic.
B) Demand is unit elastic.
C) Demand is elastic.
D) Demand is perfectly elastic.
E) Not enough information is given to determine elasticity.

Question

Exhibit 5-12 
-Refer to Exhibit 5-12. What can be said of the price elasticity of demand for this good?
A) Demand is inelastic. 
B) Demand is unit elastic. 
C) Demand is elastic. 
D) Demand is perfectly elastic. 
E) Not enough information is given to determine elasticity.

Quizplus · Accepted Answer

The slope of the demand curve in this exhibit is relatively flat, indicating that a small change in price will lead to a relatively large change in quantity demanded. This is consistent with the definition of elastic demand, making choice C the best answer.

Exhibit 5-12 -Refer to Exhibit 5-12. What Can Be Said of the Said