Figure 5-4 -Refer to Figure 5-4.Suppose the Point Labeled B Is the B

question 271

Multiple Choice

Figure 5-4
-Refer to Figure 5-4.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 $4.99 and $5.01,the price elasticity of demand is

• A)less than 1 but greater than zero.
• B)equal to 1.
• C)greater than 1.
• D)equal to zero.

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