Figure 6-1 -Other things equal, it can be concluded that in Figure 6-1, that A)D₁ is the more elastic demand curve than D₂, but only below P₂. B)D₁ is the more elastic demand curve than D₂. C)D₁ is the less elastic demand curve than D₂. D)D₁ is the more elastic demand curve than D₂, but only above P₂.

Question

Quizplus · Accepted Answer

In Figure 6-1, the demand curve D₁ is flatter than the demand curve D₂, indicating a greater responsiveness of consumers to changes in price. Thus, D₁ is the more elastic demand curve than D₂.

Figure 6-1 -Other Things Equal, It Can Be Concluded That in Figure