Figure 5-4
-Refer to Figure 5-4.Assume the section of the demand curve from A to B corresponds to prices between $8 and $16.Then,when the price changes between $9 and $10,
A)quantity demanded changes proportionately less than the price.
B)quantity demanded changes proportionately more than the price.
C)quantity demanded changes the same amount proportionately as price.
D)the price elasticity of demand equals 1.

Question

Figure 5-4 
-Refer to Figure 5-4.Assume the section of the demand curve from A to B corresponds to prices between $8 and $16.Then,when the price changes between $9 and $10,
A)quantity demanded changes proportionately less than the price. 
B)quantity demanded changes proportionately more than the price. 
C)quantity demanded changes the same amount proportionately as price. 
D)the price elasticity of demand equals 1.

Quizplus · Accepted Answer

According to the graph, the section of the demand curve from A to B is relatively steep, indicating that the demand is relatively elastic. Therefore, when the price changes between $9 and $10, the quantity demanded will change proportionately more than the price (i.e., the percentage change in quantity demanded is greater than the percentage change in price).

Figure 5-4 -Refer to Figure 5-4.Assume the Section of the Demand Curve