Figure 5-4
-Refer to Figure 5-4.Assume the section of the demand curve from B to C corresponds to prices between $0 and $15.Then,when the price changes between $7 and $9,
A)quantity demanded changes proportionately less than the price.
B)quantity demanded changes proportionately more than the price.
C)quantity demanded changes the same amount proportionately as price.
D)the price elasticity of demand equals zero.

Question

Figure 5-4 
-Refer to Figure 5-4.Assume the section of the demand curve from B to C corresponds to prices between $0 and $15.Then,when the price changes between $7 and $9,
A)quantity demanded changes proportionately less than the price. 
B)quantity demanded changes proportionately more than the price. 
C)quantity demanded changes the same amount proportionately as price. 
D)the price elasticity of demand equals zero.

Quizplus · Accepted Answer

When the price changes between $7 and $9, the quantity demanded changes proportionately less than the price, indicating inelastic demand in this range.

Figure 5-4 -Refer to Figure 5-4.Assume the Section of the Demand Curve