Use the Following for Questions 128-130

question 233

Multiple Choice

Use the following for questions 128-130.
Exhibit: Nonlinear Demand Curve

-(Exhibit: Nonlinear Demand Curve) The values for quantity demanded along this nonlinear demand curve are given by the formula Q = 24/P.It:

• A) exhibits decreasing price elasticity as the price falls in $1 increments from a price of $12 to $2.
• B) exhibits increasing price elasticity as the price falls in $1 increments from a price of $12 to $2.
• C) exhibits unit price elasticity throughout.
• D) does not fit with the law of demand.

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