) In Exhibit 57, demand is unit elastic
A)between points a and d
B)between points d and e
C)between points e and g
D)only at the top and bottom of the curve
E)anywhere along the curve

Question

)  In Exhibit 5­7, demand is unit elastic
A)between points a and d 
B)between points d and e 
C)between points e and g 
D)only at the top and bottom of the curve 
E)anywhere along the curve

Quizplus · Accepted Answer

Demand is unit elastic where the price elasticity of demand is equal to 1. We can see from Exhibit 5-7 that the slope of the demand curve is steepest at point c and flattens as we move towards point g. Therefore, the elasticity of demand increases as we move from point c towards point g. Demand is unit elastic between points d and e, where the slope of the demand curve is neither too steep nor too flat, and the price elasticity of demand is equal to 1.

) in Exhibit 5­7, Demand Is Unit Elastic

) in Exhibit 57, Demand Is Unit Elastic