Figure 7-5



Which of the following is true for the demand curve depicted in ?

a.

In the $3 to $4 range, the price elasticity of the demand curve equals 1.

b.

At a price of $3, the price elasticity of the demand curve equals approximately -3.3.

c.

In the $3 to $4 range, the demand curve is inelastic.

d.

In the $3 to $4 range, the demand curve is elastic.


c

Economics

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