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Solution:
The price-elasticity of demand at the mid-point of a straight line demand curve meeting the two axes is equal to 1.
This is because the mid-point of a straight line demand curve is where the price and quantity demanded are equal.
At this point, the slope of the demand curve is equal to 1, which means that a 1% change in price will result in a 1% change in quantity demanded.
Therefore, the price-elasticity of demand at this point is equal to 1.
Correct option is (b)