What is the correct answer?


At a point above the middle of a straight line demand curve, elasticity of demand is:

A. Less than one

B. Equal to one

C. More than one

D. Equal to infinite

Correct Answer :

C. More than one

At the point above the middle of a straight demand curve, the lower segment of demand curve is greater than upper segment. So elasticity of demand Ed = Lower segment /Upper segment, the answer will be greater than one)\

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