Currently there is a market demand for toothpaste with baking soda in it. New medical studies show that baking soda has health benefits beyond clean teeth. After these studiesare published, the market demand is such that at any price, consumers buy 10 more tubesof toothpaste than they used to. This is a parallel, rightward shift of the demand curve.Which of the following statements is true?
A) Because the curves are parallel, the elasticities don't change.
B) Despite the fact that the curves are parallel, elasticity has increased.
C) Even though the curves are parallel, the new one is more inelastic.
D) There is no relationship between the curves and their elasticities.
E) Elasticities on the new demand curve have increased at low prices and decreased at high prices.

Question

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The Answer of Currently there is a market demand for toothpaste with baking soda in it. New medical studies show that baking soda has health benefits beyond clean teeth. After these studiesare published, the market demand is such that at any price, consumers buy 10 more tubesof toothpaste than they used to. This is a parallel, rightward shift of the demand curve.Which of the following statements is true?
A) Because the curves are parallel, the elasticities don't change.
B) Despite the fact that the curves are parallel, elasticity has increased.
C) Even though the curves are parallel, the new one is more inelastic.
D) There is no relationship between the curves and their elasticities.
E) Elasticities on the new demand curve have increased at low prices and decreased at high prices.

Currently There Is a Market Demand for Toothpaste with Baking