(Figure: Calculating Elasticities) Refer to the figure. Theabsolute value of the demand elasticity of the demand curve inthe right panel is:
A)less than 1.
B)equal to 1.
C)greater than 1.
D)Not enough information is provided.

Question

(Figure: Calculating Elasticities) Refer to the figure. Theabsolute value of the demand elasticity of the demand curve inthe right panel is:
A)less than 1. 
B)equal to 1. 
C)greater than 1. 
D)Not enough information is provided.

Quizplus · Accepted Answer

The demand curve appears to be relatively steep, indicating a relatively large responsiveness of quantity demanded to changes in price. Therefore, the absolute value of the demand elasticity is likely greater than 1.

(Figure: Calculating Elasticities) Refer to the Figure