Figure 7-5
-Refer to Figure 7-5.The inelastic segment of the demand curve
A)is coincident with the horizontal axis.
B)is coincident with the vertical axis.
C)lies below the midpoint of the curve.
D)lies above the midpoint of the curve.

Question

Figure 7-5 
-Refer to Figure 7-5.The inelastic segment of the demand curve
A)is coincident with the horizontal axis. 
B)is coincident with the vertical axis. 
C)lies below the midpoint of the curve. 
D)lies above the midpoint of the curve.

Quizplus · Accepted Answer

The inelastic segment of the demand curve means that the demand is not very responsive to changes in price. Therefore, it is steeper and lies below the midpoint of the curve. Option A and B are incorrect because the inelastic segment is not coincident with either the horizontal or vertical axis. Option D is incorrect because the inelastic segment is not above the midpoint of the curve.

Figure 7-5 -Refer to Figure 7-5.The Inelastic Segment of the Demand Curve