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At a point below 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 infinity

Correct Answer : A.


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

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