Answer the question on the basis of the following demand schedule: $\begin{array}{l}
\begin{array}{ccc}
&\text { Quantity }\
\underline{\text { Price} } & \underline{\text { Demanded}} \
\$6 & 1 \
5 & 2 \
4 & 3 \
3 & 4 \
2 & 5 \
1 & 6
\end{array}
\end{array}$ Refer to the data.The price elasticity of demand is unity:
A) throughout the entire price range because the slope of the demand curve is constant.
B) in the $4-$3 price range only.
C) over the entire $3-$1 price range.
D) over the entire $6-$4 price range.

Question

Answer the question on the basis of the following demand schedule: $\begin{array}{l}
\begin{array}{ccc}
&\text { Quantity }\
\underline{\text { Price} } &  \underline{\text { Demanded}} \
 \$6 & 1 \
5 &  2 \
4 &  3 \
3 &  4 \
2 &  5 \
1 &  6
\end{array}
\end{array}$ Refer to the data.The price elasticity of demand is unity:
A) throughout the entire price range because the slope of the demand curve is constant.
B) in the $4-$3 price range only.
C) over the entire $3-$1 price range.
D) over the entire $6-$4 price range.

Quizplus · Accepted Answer

The price elasticity of demand is unity (equal to 1) in the $4-$3 price range only because the percentage change in quantity demanded is equal to the percentage change in price in this range, which is a characteristic of unitary elasticity.

Answer the Question on the Basis of the Following Demand