Refer to Figure 7-11. As price falls from P_A to P_B, which demand curve represents the most elastic demand?

A) D₁
B) D₂
C) D₃
D) All of the above are equally elastic.

Question

Refer to Figure 7-11. As price falls from P A  to P B , which demand curve represents the most elastic demand?A)  D 1 B)  D 2 C)  D 3 D)  All of the above are equally elastic.

Latifah Ashari · Accepted Answer

Final Answer : A, Explanation :  The most elastic demand curve is the one that shows the largest change in quantity demanded for a given change in price. D 1  would represent the most elastic demand if it shows the greatest horizontal movement (change in quantity) as price falls from P A  to P B .

Refer to Figure 7-11. As price falls from P_A to P_B, which demand curve represents the most elastic demand?

A) D₁
B) D₂
C) D₃
D) All of the above are equally elastic.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 7-11. As price falls from PA to PB, which demand curve represents the most elastic demand?A) D1B) D2C) D3D) All of the above are equally elastic.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 7-11. As price falls from P_A to P_B, which demand curve represents the most elastic demand?

A) D₁
B) D₂
C) D₃
D) All of the above are equally elastic.