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Commerce · Q71

Economics

Graduate and Post Graduate · Commerce · question 71

Q71

In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be

A.
0
B.
1
Answer
C.
1.5
D.
2

Answer: Option B

Solution

Answer: Option B
Solution:
In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be 1.