Figure 7-4
-Which of the following is true for the demand curve depicted in Figure 7-4?
A) An increase in price from $2 to $3 will reduce total expenditures on the product.
B) In the $2 to $3 range, the price elasticity of the demand curve is approximately unitary.
C) At a price of $2, the price elasticity of the demand curve equals approximately −2.5.
D) In the $2 to $3 range, the demand curve is inelastic.

Question

Figure 7-4 
-Which of the following is true for the demand curve depicted in Figure 7-4?
A) An increase in price from $2 to $3 will reduce total expenditures on the product. 
B) In the $2 to $3 range, the price elasticity of the demand curve is approximately unitary. 
C) At a price of $2, the price elasticity of the demand curve equals approximately −2.5. 
D) In the $2 to $3 range, the demand curve is inelastic.

Quizplus · Accepted Answer

The Answer of Figure 7-4 
-Which of the following is true for the demand curve depicted in Figure 7-4?
A) An increase in price from $2 to $3 will reduce total expenditures on the product. 
B) In the $2 to $3 range, the price elasticity of the demand curve is approximately unitary. 
C) At a price of $2, the price elasticity of the demand curve equals approximately −2.5. 
D) In the $2 to $3 range, the demand curve is inelastic.

Figure 7-4 -Which of the Following Is True for the Demand Curve