In Panel A of Figure 6.1, verify that demand is unitary elastic over the price range of $11 to $13 without calculating the price elasticity of demand.

Figure 6.1

Transcribed Image Text:

Quantity effect dominates Price effect dominates 24 24 E = -2.43 18 18 16 16 f 13 g 11 E = -0.50 7 600 800 1,100 1,300 2,400 600 800 1,500 1,700 2,400 Quantity of DVDS per week Panel A – An elastic region of demand Quantity of DVDS per week Panel B – An inelastic region of demand Price per DVD (dollars) Price per DVD (dollars)