Figure 6-1

-In Figure 6-1,
A)D₁ is more elastic than D₂ below P₂ and less elastic above P₂.
B)D₁ is less elastic than D₂ at all prices.
C)D₂ is less elastic than D₁ at all prices.
D)D₂ is more elastic than D₂ above P₂ but less elastic below P₂.

Question

Figure 6-1
 
-In Figure 6-1,
A)D₁ is more elastic than D₂ below P₂ and less elastic above P₂. 
B)D₁ is less elastic than D₂ at all prices. 
C)D₂ is less elastic than D₁ at all prices. 
D)D₂ is more elastic than D₂ above P₂ but less elastic below P₂.

Quizplus · Accepted Answer

Elasticity refers to the responsiveness of quantity demanded to a change in price. If D₂ is less elastic than D₁ at all prices, it means that the quantity demanded for D₂ changes less in response to price changes compared to D₁, consistently across all price levels.

Figure 6-1 -In Figure 6-1