Figure 7-11

-Refer to Figure 7-11.As price falls from PA to PB,which demand curve represents the most elastic demand?
A)D₁
B)D₂
C)D₃
D)All of the above are equally elastic.

Question

Figure 7-11
 
-Refer to Figure 7-11.As price falls from PA to PB,which demand curve represents the most elastic demand?
A)D₁ 
B)D₂ 
C)D₃ 
D)All of the above are equally elastic.

Quizplus · Accepted Answer

Demand curve D₁ represents the most elastic demand because the quantity demanded changes proportionally more than the price, resulting in a flatter slope.

Figure 7-11 -Refer to Figure 7-11.As Price Falls from PA to PB,which