Figure 7-2 Figure 7-2 Depicts a Demand Curve with a Price Elasticity

question 139

Multiple Choice

Figure 7-2
Figure 7-2 depicts a demand curve with a price elasticity that is

• A) perfectly elastic, implying that as much as can be supplied will be purchased at the market price.
• B) relatively inelastic, implying that a percent increase in price results in a smaller percent reduction in sales.
• C) unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
• D) perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.