Use the Following to Answer Question(s): Demand and Price Elasticity

Multiple Choice

Use the following to answer question(s) : Demand and Price Elasticity 2

-(Exhibit: Demand and Price Elasticity 2) The price elasticity of demand between points A and B is:

A) elastic, since total revenue falls when price falls from $8 to $6.
B) elastic, since total revenue increases when price falls from $8 to $6.
C) inelastic, since the percentage change in quantity is less than the percentage change in price when price falls from $8 to $6.
D) positive, because the slope is negative.