Question

Price Demand Quantity Refer to the figure above, the absolute value of the price elasticity of demand at points a and bis 1. What is the value of Pb? A) $50 B) $40 C) $30 D) $20 Price Quantity 11. Referring to the figure above, as price falls from PA to PB, the quantity demanded increases the most along D1, therefore A) D1 is unit elastic. B) Dj is more inelastic than D2 or D3. C) Dj is more elastic than D2 or D3 D) D is elastic at PA but inelastic at PB.

Answer 1

a) "A"

the price at PB is $50 then only the price elasticity will be equal to 1 in the market. The answer is "A".

b) "C"

That is because D1 is more elastic than the other tow firms in the market.