-In the above figure, over the price range P5P6, demand is
A) unit elastic.
B) elastic.
C) perfectly inelastic.
D) inelastic.

Question

-In the above figure, over the price range P5P6, demand is
A) unit elastic. 
B) elastic. 
C) perfectly inelastic. 
D) inelastic.

Quizplus · Accepted Answer

Over the price range P5P6, if the quantity demanded does not change (or changes very little) as the price changes, demand is considered inelastic. This means consumers' purchase quantity does not significantly respond to price changes in this range.

-In the Above Figure, Over the Price Range P5P6, Demand