Figure 2.4.1
-Refer to Figure 2.4.1. Which of the following statements about the demand curve in the figure?
A) Demand is infinitely elastic.
B) Demand is completely inelastic.
C) Demand becomes more inelastic as price declines.
D) Demand becomes more elastic as price declines.

Question

Figure 2.4.1
-Refer to Figure 2.4.1. Which of the following statements about the demand curve in the figure?
A) Demand is infinitely elastic. 
B) Demand is completely inelastic. 
C) Demand becomes more inelastic as price declines. 
D) Demand becomes more elastic as price declines.

Quizplus · Accepted Answer

The demand curve in the figure likely becomes steeper as the price decreases, indicating that demand becomes more inelastic as the price declines. This is because the slope of the demand curve represents the elasticity of demand, and a steeper slope at lower prices suggests less sensitivity to price changes (more inelastic demand).

Figure 2.4.1 -Refer to Figure 2.4.1. Which of the Following Statements About