FIGURE 5-3 -Refer to Figure 5-3. Elasticity Varies Along a Linear Demand

Multiple Choice

FIGURE 5-3

-Refer to Figure 5-3. Elasticity varies along a linear demand curve. What does Graph A represent?

A) the section of the curve where, starting at P2, a decrease in price will lead to an increase in total revenue
B) the section of the curve where Ed is < 1
C) the section of the curve where the percentage change in quantity is larger than the percentage change in price
D) the section of the curve where the curve is elastic