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Figure 4-2
-Refer to Figure 4-2 once again.Suppose that now the demand curve has shifted to D'D'.At what point along D'D' is price elasticity equal to 1?
A)G
B)between G and H.
C)H.
D)between H and I.
E)I.

Question

Use the following to answer questions :
Figure 4-2 
-Refer to Figure 4-2 once again.Suppose that now the demand curve has shifted to D'D'.At what point along D'D' is price elasticity equal to 1?
A)G 
B)between G and H. 
C)H. 
D)between H and I. 
E)I.

Quizplus · Accepted Answer

At point I, the percentage change in quantity demanded is equal to the percentage change in price, so price elasticity is equal to 1.

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