-The Figure Above Illustrates a Linear Demand Curve

question 400

Multiple Choice

-The figure above illustrates a linear demand curve. By comparing the price elasticity in the $2 to $4 price range with the elasticity in the $8 to $10 range, you can conclude that the elasticity is

• A) greater in the $8 to $10 range.
• B) greater in the $2 to $4 range.
• C) the same in both price ranges.
• D) greater in the $8 to $10 range when the price rises but greater in the $2 to $4 range when the price falls.

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