Exhibit 19-1 -Refer to Exhibit 19-l. The demand for the good represented by demand curve D₃ is A)inelastic. B)elastic. C)unit elastic. D)perfectly elastic. E)more elastic at higher prices than at lower prices.

Question

Quizplus · Accepted Answer

The demand curve D₃, as described, suggests a varying elasticity along the curve. Demand is more elastic at higher prices because a small change in price results in a larger change in quantity demanded. Conversely, at lower prices, demand becomes less elastic as the same change in price results in a smaller change in quantity demanded. This characteristic is typical of demand curves that are not perfectly elastic or inelastic, indicating that elasticity varies at different points along the curve.

Exhibit 19-1 ​

Exhibit 19-1