# Question: the following graph represents the market demand for paper towelandnbsp...

###### Question details

The following graph represents the market demand for paper towel. Circle one

a) Using the midpoint method, the elasticity of demand between points A and B is equal to

i)1.00

ii) 1.33

iii) 2.50

iv) 6.00

Demand is (elastic, inelastic, unit elastic) between points A and B. This is consistent with the fact that total expenditure (or total revenue) in the paper towel market (increases, decreases, stays the same) as we move from point A to B.

(b) Using the midpoint method, the elasticity of demand between points B and C is

i) 0.4

ii) 0.75

iii) 1.00

iv) 1.33

Demand is (elastic, inelastic, unit elastic) between points B and C. This is consistent with the fact that total expenditure (or total revenue) in the paper towel market (increases, decreases, stays the same) as we move from point B to C.