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

question 41

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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