Asked by Aspen Arellano on Jul 04, 2024
Verified
Refer to Figure 5-1. Between point A and point B on the graph, demand is
A) perfectly elastic.
B) inelastic.
C) unit elastic.
D) elastic, but not perfectly elastic.
Perfectly Elastic
A market condition where demand or supply responds infinitely at a particular price level and zero elsewhere.
Elastic
Describes a situation where the demand for a good or service significantly changes in response to price changes, indicating sensitivity to price.
- Distinguish between perfectly elastic, perfectly inelastic, unit elastic, elastic, and inelastic demand.
Verified Answer
AK
Ambika KandelJul 06, 2024
Final Answer :
D
Explanation :
Between points A and B, the demand curve is downward sloping but not horizontal or vertical, indicating that the demand is elastic (meaning consumers are responsive to price changes), but it is not perfectly elastic (which would be represented by a horizontal line).
Learning Objectives
- Distinguish between perfectly elastic, perfectly inelastic, unit elastic, elastic, and inelastic demand.
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