Figure 2.4.1
-Refer to Figure 2.4.1. Between points B and C, demand is:
A) small.
B) inelastic, but not completely inelastic.
C) unit elastic.
D) elastic, but not infinitely elastic.
E) infinitely elastic.

Question

Figure 2.4.1
-Refer to Figure 2.4.1. Between points B and C, demand is:
A) small. 
B) inelastic, but not completely inelastic. 
C) unit elastic. 
D) elastic, but not infinitely elastic. 
E) infinitely elastic.

Quizplus · Accepted Answer

Between points B and C, a price increase results in a relatively larger decrease in quantity demanded. This indicates that demand is elastic. However, it is not infinitely elastic as there is still some level of demand even at the higher price.

Figure 2.4.1 -Refer to Figure 2.4.1. Between Points B and C, Demand