On a straight line demand curve, elasticity of demand at the midpoint is:
Equal to zero
Equal to one
Equal to infinity
More than one
Correct Answer :
B. Equal to one
At the mid point of a demand curve the area below the mid point and the area above the mid point both are equal .So according to geometrical method, elasticity of demand Ed = Lower segment /Upper segment, the answer will be one )
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Distress sale of goods
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Price of the commodity
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