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Econhw5part2.docx

2 . Elastic, inelastic, and unit-elastic demand

The following graph shows the demand for a good.

For each region on the graph given in the following table, use the elasticity formula to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic.

True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve.

· True

· False