Question

1. in the accompanying diagram, demand is relatively elastic a) in the $p_{4}p_{1}$ price range. b) in the $0p_{1}$ price range. c) in the $p_{3}p_{4}$ price range. d) only at price $p_{2}$. 10) in the accompanying diagram, demand is relatively inelastic a) at price $p_{3}$. b) at any price below $p_{2}$. c) in the $p_{4}p_{1}$ price range. d) in the $p_{2}p_{1}$ price range.

Explanation:

Question 9

Step1: Recall elasticity rules

For a linear demand curve, demand is elastic above the midpoint (unit elastic point), unit elastic at the midpoint, and inelastic below the midpoint. The midpoint here is at price $P_2$.

Step2: Match to options

The $P_3P_4$ range is above the unit elastic point ($P_2$), so demand is elastic here.

Step1: Recall elasticity rules

For a linear demand curve, demand is inelastic below the midpoint (unit elastic point at $P_2$).

Step2: Match to options

The $P_1P_2$ range is below the unit elastic point ($P_2$), so demand is inelastic here.

Answer:

C) in the $P_3P_4$ price range.

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Question 10