Figure 5-1 -Refer to Figure 5-1.Suppose the Point Labeled B Is the Labeled

question 74

Multiple Choice

Figure 5-1

-Refer to Figure 5-1.Suppose the point labeled B is the "halfway point" on the demand curve and it corresponds to a price of $5.00.Then,between prices of $4.90 and $5.10,

• A)the price elasticity of demand is less than 1.
• B)the price elasticity of demand is equal to 1.
• C)the price elasticity of demand is greater than 1.
• D)any of the above could be correct, depending on the quantities demanded at prices of $4.90 and $5.10.