Use the following for questions 128-130.
Exhibit: Nonlinear Demand Curve

-(Exhibit: Nonlinear Demand Curve) The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.It:
A) displays the same percentage changes in quantity as the percentage changes in price, for all price changes shown in the exhibit.
B) has lower total revenue as price falls.
C) is price elastic throughout.
D) is price inelastic throughout.

Question

Use the following for questions 128-130.
Exhibit: Nonlinear Demand Curve
 
-(Exhibit: Nonlinear Demand Curve) The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.It:
A) displays the same percentage changes in quantity as the percentage changes in price, for all price changes shown in the exhibit. 
B) has lower total revenue as price falls. 
C) is price elastic throughout. 
D) is price inelastic throughout.

Quizplus · Accepted Answer

The demand curve is nonlinear, so the percentage changes in quantity will not be the same as the percentage changes in price for all price changes. However, at the point shown in the exhibit, the percentage change in quantity is equal to the percentage change in price. This means that the demand curve is price elastic at that point.

Use the Following for Questions 128-130