Question

If a point bisects the demand curve in two equal parts, then elasticity will be equal to _______.

• A. zero
• B. five
• C. two
• D. one

Answer 1

The correct option is D one

As per the geometric/point method,
Elasticity of demand $=\frac{\text{Lower portion of the demand curve}}{\text{Upper portion of the demand curve}}$
Here, a point bisects the demand curve in two equal parts. Thus, lower portion $=$ upper portion. As a result, elasticity of demand $=1$.