Assume the section of the demand curve labled C correspnds to prices between ##Question_Title## and $15. Then, when the price

Question

changes between $7 and $9, ______________?

The graph shows Price as the Y int and Quantity for X int. the Demand line is broken into A, B, and C. A is Elastic, B I believe is unit elastic, C is Inelastic.

The answer is quantity demanded changes proportionately LESS than the price.... please explain Why?

Answer 1

You should provide graph to solve right.

ΔP=9-7= +2

Middle point for price = (7+9)/2 = 8

ΔP% = 2/8= 1/4 = 0.25

E=ΔQ% / ΔP%