Use the following to answer question(s): Demand for Shirts

-(Exhibit: Demand for Shirts) The price elasticity of demand for the segment CD is:
A) greater than 1 (absolute value).
B) -1.
C) -0.71.
D) -0.29.

Question

Use the following to answer question(s): Demand for Shirts
 
-(Exhibit: Demand for Shirts) The price elasticity of demand for the segment CD is:
A) greater than 1 (absolute value). 
B) -1. 
C) -0.71. 
D) -0.29.

Quizplus · Accepted Answer

According to the exhibit, the demand curve for segment CD is relatively flat, indicating that a small change in price will result in a relatively large change in quantity demanded. This is characteristic of elastic demand, which is defined as having a price elasticity of demand greater than 1 (absolute value). Therefore, the correct answer is A.

Use the Following to Answer Question(s): Demand for Shirts