The following figure shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
Figure 11-5
-Refer to Figure 11-5.Between points A and F on the demand curve,the price elasticity of demand:
A)is equal to one.
B)exceeds one.
C)is equal to zero.
D)is less than one.

Question

The following figure shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
Figure 11-5 
-Refer to Figure 11-5.Between points A and F on the demand curve,the price elasticity of demand:
A)is equal to one. 
B)exceeds one. 
C)is equal to zero. 
D)is less than one.

Quizplus · Accepted Answer

Between points A and F, the demand curve is relatively steep, indicating a low price elasticity of demand. Therefore, the correct choice is D, which states that the elasticity is less than one.

The Following Figure Shows the Demand Curve and the Marginal