Figure 7-5 -Which of the Following Is True for the Demand Curve

question 66

Multiple Choice

Figure 7-5
-Which of the following is true for the demand curve depicted in Figure 7-5?

• A) In the $3 to $4 range, the price elasticity of the demand curve equals 1.
• B) At a price of $3, the price elasticity of the demand curve equals approximately −3.3.
• C) In the $3 to $4 range, the demand curve is inelastic.
• D) In the $3 to $4 range, the demand curve is elastic.

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Definitions:

Income-sharing Ratio

The pre-agreed proportion in which partners or stakeholders share the generated income or losses.

LLP

A legal structure for a business that provides the owners with limited liability protection, typically used by professional services firms.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Capital Account Balance

The net result of public and private international investments flowing in and out of a country, representing changes in national ownership of assets.