If two linear demand functions intersect the quantity axis at the same point, then:
A)when prices are equal, so are the elasticities.
B)when quantities are equal, so are the price elasticities.
C)when prices are equal, so are the quantities.
D)at the point of intersection the two elasticities are equal to one.

Question

Quizplus · Accepted Answer

If two linear demand functions intersect the quantity axis at the same point, it means their intercepts are the same. This implies that when quantities are equal, prices must also be equal. Therefore, when prices are equal, the two demand functions will have the same quantity demanded, which means their price elasticities will also be the same.

If Two Linear Demand Functions Intersect the Quantity Axis at the Same