Question

Moving from left to right along a downward- sloping linear demand curve, price elasticity varies in which of the following ways?


First unit elastic, then inelastic throughout

Option A,First unit elastic, then inelastic throughout

a

First unit elastic, then elastic throughout

Option B,First unit elastic, then elastic throughout

b

First inelastic, then unit elastic throughout

Option C,First inelastic, then unit elastic throughout

c

First elastic, then unit elastic, and finally inelastic

Option D,First elastic, then unit elastic, and finally inelastic

d

First inelastic, then unit elastic, and finally elastic

Answer 1

Option D. Moving left to right the demand is first elastic, then unit elastic at the midpoint, and finally inelastic.