Exhibit 6-2

-Refer to Exhibit 6-2. Elasticity varies along a linear demand curve. Graph A represents the section of the curve where:

Question

Exhibit 6-2 -Refer to Exhibit 6-2. Elasticity varies along a linear demand curve. Graph A represents the section of the curve where: A)the curve is inelastic. B)E_d is < 1. C)starting at P₂, a decrease in price will lead to a decrease in total revenue. D)all of the above are correct.

Quizplus · Accepted Answer

Graph A represents the inelastic portion of a linear demand curve, where the price elasticity of demand is less than 1. In this section, a decrease in price will lead to a decrease in total revenue, as the percentage change in quantity demanded is less than the percentage change in price.

​Exhibit 6-2 ​

Exhibit 6-2