Question

Which of the following statements about price elasticity of demand is​ true?

Answer 1

Answer:

B. The elastic portion of a​ straight-line, downward-sloping demand curve corresponds to the segment above the midpoint.

Explanation:

Elasticity measures the sensitivity of one variable to another. Specifically it is a figure that indicates the percentage variation that a variable will experience in response to a variation of another one percent.

The elasticity of demand measures the reaction of demand when one of the factors that affects it varies.

Elasticity - Price of demand.

easure the sensitivity of the quantity demanded to price variations. It indicates the percentage variation that the quantity demanded of a good will experience if its price rises by 1 percent.

Elastic Demand

The demand quantity is relatively sensitive to price variations, so the total expenditure on the product decreases when the price rises, the price elasticity takes value greater than -∞ but less than -1