Use the Figure Below to Answer the Following Question

question 102

Multiple Choice

Use the figure below to answer the following question.

Figure 4.1.1
-Figure 4.1.1 illustrates a linear demand curve. Comparing the price elasticity in the $2 to $3 price range with the elasticity in the $8 to $9 range, we can conclude

• A)that demand is more elastic in the $8 to $9 price range.
• B)that demand is more elastic in the $2 to $3 price range.
• C)that the price elasticity of demand is the same in both price ranges.
• D)nothing without numerical information about quantities.
• E)that the price elasticity of demand is zero in both price ranges because the demand curve is a straight-line demand curve.

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Definitions:

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.

Unanimity

Complete agreement among all members or parties involved on a particular issue or decision.

Rational

Based on or in accordance with reason or logic; capable of making sensible or logical decisions.

Antecedent

A preceding event, condition, or cause that logically goes before something else.