Figure 5-1 -Refer to Figure 5-1.Suppose the Point Labeled B Is the Labeled

Multiple Choice

Figure 5-1

-Refer to Figure 5-1.Suppose the point labeled B is the "halfway point" on the demand curve and it corresponds to a price of $5.00.Then,between prices of $4.90 and $5.10,

A) the price elasticity of demand is less than 1.
B) the price elasticity of demand is equal to 1.
C) the price elasticity of demand is greater than 1.
D) any of the above could be correct, depending on the quantities demanded at prices of $4.90 and $5.10.