Use the following figure to answer the question : Figure 11-5 : shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF.
-Refer to Figure 11-5.Between points E and A on the demand curve,the price elasticity of demand:
A)is equal to one.
B)exceeds one.
C)is equal to zero.
D)is less than one.

Question

Use the following figure to answer the question : Figure 11-5 : shows the demand curve and the marginal revenue curve of a monopolist.On the horizontal axis,OG = GF. 
-Refer to Figure 11-5.Between points E and A on the demand curve,the price elasticity of demand:
A)is equal to one. 
B)exceeds one. 
C)is equal to zero. 
D)is less than one.

Quizplus · Accepted Answer

Between points E and A on the demand curve, the percentage change in quantity demanded is greater than the percentage change in price, indicating that the price elasticity of demand exceeds one. This means consumers are relatively responsive to price changes in this range.

Use the Following Figure to Answer the Question : Figure