-Refer to the above table. For which prices is demand unit-elastic?
A) in a range of prices below $6.50
B) in a range of prices above $6.50
C) in a range of prices between $5 and $10
D) in a range of prices between $6 and $6.50

Question

-Refer to the above table. For which prices is demand unit-elastic?
A) in a range of prices below $6.50 
B) in a range of prices above $6.50 
C) in a range of prices between $5 and $10 
D) in a range of prices between $6 and $6.50

Quizplus · Accepted Answer

Demand is unit-elastic where the percentage change in quantity demanded equals the percentage change in price, which typically occurs in a specific price range. Without the table, the exact range can't be determined, but based on common economic principles, a narrow range such as between $6 and $6.50 suggests a transition area where elasticity shifts, making it a plausible answer for unit elasticity.

-Refer to the Above Table