-Refer to Figure 3 -1. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings, and the market for designer jeans. Which graph most likely represents which market?
A) Graph B represents the market for original Picasso paintings and Graph A represents the market for designer jeans.
B) Graph B represents both the market for original Picasso paintings and designer jeans.
C) Graph A represents the market for original Picasso paintings and Graph B represents the market for designer jeans.
D) Graph A represents both the market for original Picasso paintings and designer jeans.

Question

-Refer to Figure 3 -1. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings, and the market for designer jeans. Which graph most likely represents which market?
A) Graph B represents the market for original Picasso paintings and Graph A represents the market for designer jeans. 
B) Graph B represents both the market for original Picasso paintings and designer jeans. 
C) Graph A represents the market for original Picasso paintings and Graph B represents the market for designer jeans. 
D) Graph A represents both the market for original Picasso paintings and designer jeans.

Quizplus · Accepted Answer

Graph B, with a steep demand curve, likely represents the market for original Picasso paintings, indicating that changes in price have little effect on quantity demanded due to their uniqueness and high value. Graph A, with a more elastic demand curve, likely represents the market for designer jeans, where changes in price can significantly affect the quantity demanded.