1)

The price elasticity of demand is the ratio of the percentage change in the quantity demanded to the percent change in the price as one moves along the demand curve.

True or False

2)

r7-1.png

Please use link above to access graph figure (Figure: The Demand Curve)

Look again at the figure The Demand Curve. Using the midpoint method, the price elasticity of demand between $1 and $2 is approximately:

• A) 5.67
• B) 0.16
• C) 0.56
• D) 1.8

3)

If the price elasticity of demand is found to be 6, then demand is:

• A) unit- elastic
• B) horizontal
• C) elastic
• D) inelastic