Figure: Demand Elasticities Refer to the figure. It shows two different demand curves. Based on the graph, which statement is TRUE?
A) Elasticity of demand equals the slope of the curve so demand curve A is more elastic.
B) Elasticity of demand equals the slope of the curve so demand curve B is more elastic.
C) Since these two linear demand curves run through a common point we can say that at any given quantity, demand curve A is more elastic than curve B.
D) We cannot infer anything about elasticity from this diagram because slope does not equal elasticity.

Question

Figure: Demand Elasticities  Refer to the figure. It shows two different demand curves. Based on the graph, which statement is TRUE?
A) Elasticity of demand equals the slope of the curve so demand curve A is more elastic. 
B) Elasticity of demand equals the slope of the curve so demand curve B is more elastic. 
C) Since these two linear demand curves run through a common point we can say that at any given quantity, demand curve A is more elastic than curve B. 
D) We cannot infer anything about elasticity from this diagram because slope does not equal elasticity.

Quizplus · Accepted Answer

The Answer is C

Figure: Demand Elasticities Refer to the Figure