Figure 7-8

-Refer to Figure 7-8.The section of the demand curve labeled "A" represents
A) the inelastic section of the demand curve.
B) the unit-elastic section of the demand curve.
C) the elastic section of the demand curve.
D) the perfectly elastic section of the demand curve.

Question

Figure 7-8
 
-Refer to Figure 7-8.The section of the demand curve labeled "A" represents
A) the inelastic section of the demand curve. 
B) the unit-elastic section of the demand curve. 
C) the elastic section of the demand curve. 
D) the perfectly elastic section of the demand curve.

Quizplus · Accepted Answer

The section of the demand curve labeled "A" is relatively horizontal, which indicates that a small change in price leads to a relatively large change in quantity demanded. This characteristic is consistent with the definition of elastic demand.

Figure 7-8 -Refer to Figure 7-8.The Section of the Demand Curve Labeled