Figure 6-2

-From Figure 6-2, we can infer that demand is ____ between P = 12 and P = 10 and ____ between P = 6 and P = 4.
A)elastic; elastic
B)elastic; inelastic
C)inelastic; elastic
D)inelastic; inelastic

Question

Figure 6-2
 
-From Figure 6-2, we can infer that demand is ____ between P = 12 and P = 10 and ____ between P = 6 and P = 4.
A)elastic; elastic 
B)elastic; inelastic 
C)inelastic; elastic 
D)inelastic; inelastic

Quizplus · Accepted Answer

From Figure 6-2, we can see that the demand curve is steeper between P = 12 and P = 10, indicating that a relatively small change in price will lead to a greater change in quantity demanded, which is characteristic of elastic demand. Similarly, the demand curve is flatter between P = 6 and P = 4, indicating that a relatively large change in price will lead to a relatively small change in quantity demanded, which is characteristic of inelastic demand. Therefore, we can infer that demand is elastic between P = 12 and P = 10 and inelastic between P = 6 and P = 4, leading to option B as the correct answer.

Figure 6-2 -From Figure 6-2, We Can Infer That Demand Is ____