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Refer to the Diagram and Assume That Price Increases from $2

Question 334

Multiple Choice

Refer to the diagram and assume that price increases from $2 to $10. The coefficient of price elasticity of demand (midpoint formula) relating to this change in price is about A) 0.25, and demand is inelastic. B) 1.5, and demand is elastic. C) 1, and demand is unit elastic. D) 0.67, and demand is inelastic. Refer to the diagram and assume that price increases from $2 to $10. The coefficient of price elasticity of demand (midpoint formula) relating to this change in price is about


A) 0.25, and demand is inelastic.
B) 1.5, and demand is elastic.
C) 1, and demand is unit elastic.
D) 0.67, and demand is inelastic.

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