Exhibit 5-26 Refer to Exhibit 5-26

Multiple Choice

Exhibit 5-26 Refer to Exhibit 5-26.As you move down the demand curve from A to B to C to D, which of the following describes what happens to the price elasticity of demand?

A) nothing
B) goes from elastic at A and gets increasingly inelastic as you go to B and C and D
C) goes from perfectly inelastic at A and gets increasingly elastic as you go to B and C and D
D) goes from inelastic at A and gets increasingly elastic as you go to B and C and D
E) goes from inelastic at A and gets increasingly elastic as you go to B but then gets increasingly inelastic as you go to C and D