Refer to Figure 24

question 123

Multiple Choice

Refer to Figure 24.3.Which of the following statements is true about the price elasticity of demand at price P₃?

• A) The price elasticity is elastic.
• B) The price elasticity is unitary.
• C) The price elasticity is inelastic.
• D) The price elasticity is zero.

---

Definitions:

Pounds

A unit of mass commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Marking to Market

The practice of updating the value of a financial instrument to reflect its current market value.

Delivery

The process of transporting goods from one location to another or the act of handing over possession or control.

Contract Price

The agreed-upon price for goods or services set forth in a contractual agreement.