) Which of the following statements is true in the range of the total revenuecurve labeled B in Exhibit 58?
A)Demand is elastic.
B)Demand is inelastic.
C)Demand is unit elastic.
D)We cannot tell anything about elasticity of demand because this is a total revenue curve.
E)Demand is perfectly elastic.

Question

)  Which of the following statements is true in the range of the total revenuecurve labeled B in Exhibit 5­8?
A)Demand is elastic. 
B)Demand is inelastic. 
C)Demand is unit elastic. 
D)We cannot tell anything about elasticity of demand because this is a total revenue curve. 
E)Demand is perfectly elastic.

Quizplus · Accepted Answer

In the range of the total revenue curve labeled B, the slope of the curve is negative, indicating that the price elasticity of demand is less than one. This means that demand is inelastic in this range, as changes in price have a relatively small effect on the quantity demanded.

) Which of the Following Statements Is True in the Range