Question 8
[Maximum number: 1]
The diagram shows the demand curve for a product.
What is the price at which the price elasticity of demand is unit elastic?
A
$ 0
B
$ 50
C
$ 100
D
every price along the demand curve
CAIE A-Level Economics 2.2.5 PED on straight-line demand
Practise reading straight-line demand diagrams to locate elastic, inelastic and unit elastic points along the same curve.
How this is tested
- identify where PED is unit elastic on a straight-line demand curve
- interpret movements along a demand curve to decide whether PED rises or falls