Suppose That,as Price Falls from $10 to $9,quantity Demanded Rises

question 53

Multiple Choice

Suppose that,as price falls from $10 to $9,quantity demanded rises from 1 to 2 units and,as price falls from $2 to $1,quantity demanded increases from 9 to 10 units.The price elasticity of demand measured between the $10 and $9 points compared to that between the $2 and $1 points will show the

• A) two elasticities are the same.
• B) elasticity between $10 and $9 to be smaller.
• C) elasticity between $2 and $1 to be more elastic.
• D) elasticity between $10 and $9 to be more elastic.
• E) elasticity between $2 and $1 to be larger.

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