Figure 5-1

-Refer to Figure 5-1.Assume the section of the demand curve labeled A corresponds to prices between $8 and $16.Then,when the price changes between $9 and $10,
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 is less than 1.

Question

Figure 5-1
 
-Refer to Figure 5-1.Assume the section of the demand curve labeled A corresponds to prices between $8 and $16.Then,when the price changes between $9 and $10,
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 is less than 1.

Quizplus · Accepted Answer

In the section of the demand curve labeled A, the demand is elastic, meaning that the quantity demanded changes proportionately more than the price when the price changes between $9 and $10.

Figure 5-1 -Refer to Figure 5-1.Assume the Section of the Demand Curve