Consider two straight line demand curves NM and RS in the...

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Consider two straight line demand curves NM and RS in the given figure.

Select the correct statement from amongst the following.

A. Price elasticity of demand will be equal to 1 at point A and less than 1 at point B

B. Price elasticity of demand will be greater than 1 at point A and equal to 1 at point B

C. Price elasticity of demand will be less than 1 at point A and greater than 1 at point B

D. Price elasticity of demand will be greater than 1 at point A and less than 1 at point B

Answer: Option A

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