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Figure: The Demand for e-Books
-(Figure: The Demand for e-Books) Look at the figure The Demand for e-Books. The demand schedule _____ when the price increases from $4 to $6 _____ when it increases from $6 to $8.
A) is less elastic; than
B) is more elastic; than
C) has the same elasticity;; as
D) is unit-elastic; and

Question

Use the following to answer questions:
Figure: The Demand for e-Books 
-(Figure: The Demand for e-Books) Look at the figure The Demand for e-Books. The demand schedule _____ when the price increases from $4 to $6 _____ when it increases from $6 to $8.
A) is less elastic; than 
B) is more elastic; than 
C) has the same elasticity;; as 
D) is unit-elastic; and

Quizplus · Accepted Answer

The demand schedule is less elastic when the price increases from $4 to $6 than when it increases from $6 to $8 because the percentage change in quantity demanded is smaller relative to the percentage change in price at lower price levels.

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