Figure 5-1

-Refer to Figure 5-1. Between point A and point B on the graph, demand is
A)perfectly elastic.
B)inelastic.
C)unit elastic.
D)elastic, but not perfectly elastic.

Question

Figure 5-1
 
-Refer to Figure 5-1. Between point A and point B on the graph, demand is
A)perfectly elastic. 
B)inelastic. 
C)unit elastic. 
D)elastic, but not perfectly elastic.

Quizplus · Accepted Answer

Between points A and B, the demand curve is downward sloping but not horizontal or vertical, indicating that the demand is elastic (meaning consumers are responsive to price changes), but it is not perfectly elastic (which would be represented by a horizontal line).

Figure 5-1 -Refer to Figure 5-1. Between Point a and Point B