Figure 7-7

-Refer to Figure 7-7.The inelastic segment of the demand curve
A) is coincident with the horizontal axis.
B) is coincident with the vertical axis.
C) lies below the midpoint of the curve.
D) lies above the midpoint of the curve.

Question

Figure 7-7
 
-Refer to Figure 7-7.The inelastic segment of the demand curve
A) is coincident with the horizontal axis. 
B) is coincident with the vertical axis. 
C) lies below the midpoint of the curve. 
D) lies above the midpoint of the curve.

Quizplus · Accepted Answer

The inelastic segment of the demand curve is the portion that is relatively unresponsive to changes in price. This means that consumers are still willing to purchase about the same quantity of the good even if the price increases. Therefore, the inelastic segment of the demand curve is steeper and lies below the midpoint of the curve.

Figure 7-7 -Refer to Figure 7-7.The Inelastic Segment of the Demand Curve