What is the correct answer?


On a straight line demand curve, elasticity of demand at the midpoint is:

A. Equal to zero

B. Equal to one

C. Equal to infinity

D. 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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