Figure 7-7

-Refer to Figure 7-7.The absolute value of the price elasticity of demand at the midpoint of the demand curve is
A) at a maximum.
B) at a minimum.
C) zero.
D) one.

Question

Figure 7-7
 
-Refer to Figure 7-7.The absolute value of the price elasticity of demand at the midpoint of the demand curve is
A) at a maximum. 
B) at a minimum. 
C) zero. 
D) one.

Quizplus · Accepted Answer

The midpoint of the demand curve is where the elasticity of demand is unitary, which means it is equal to one. Therefore, the best choice is D, as it is the only option that reflects this characteristic.

Figure 7-7 -Refer to Figure 7-7.The Absolute Value of the Price Elasticity