Figure 7-4 -Which of the Following Is True for the Demand Curve

question 81

Multiple Choice

Figure 7-4
-Which of the following is true for the demand curve depicted in Figure 7-4?

• A) An increase in price from $2 to $3 will reduce total expenditures on the product.
• B) In the $2 to $3 range, the price elasticity of the demand curve is approximately unitary.
• C) At a price of $2, the price elasticity of the demand curve equals approximately −2.5.
• D) In the $2 to $3 range, the demand curve is inelastic.

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Definitions:

Assisted Living

A residential option for seniors who need help with some daily activities like bathing, dressing, and medication management.

ADLs

Activities of Daily Living, which are routine activities people do every day without assistance, such as eating, bathing, dressing, and moving around.

Eating

The act of consuming food.

Bathing

The act of washing oneself or another, typically in a container filled with water, such as a bathtub or shower.