Use the following to answer question:
-(Figure: The Demand for e-Books)Use 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 question: 
-(Figure: The Demand for e-Books)Use 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

As we move along the demand curve from point A to point B, the slope (or elasticity) decreases, indicating that the demand is becoming less responsive to price changes. Therefore, the demand schedule is less elastic when the price increases from $4 to $6. Similarly, as we move along the demand curve from point C to point D, the slope (or elasticity) increases, indicating that the demand is becoming more responsive to price changes. Therefore, the demand schedule is more elastic when the price increases from $6 to $8.

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