Figure 5-1

-Refer to Figure 5-1.Assume the section of the demand curve labeled 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 is greater than 1.

Question

Figure 5-1
 
-Refer to Figure 5-1.Assume the section of the demand curve labeled 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 is greater than 1.

Quizplus · Accepted Answer

In the section of the demand curve labeled C, the quantity demanded changes proportionately less than the price, indicating inelastic demand.

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