The exhibit illustrates two possible demand curves for a product, D₁ and D₂. Which of the following is true regarding these demand curves?
A)Demand curve D₁ represents a demand curve that is relatively more elastic than demand curve D₂.
B)Demand curve D₁ represents a demand curve that is relatively more inelastic than demand curve D₂.
C)Demand curve D₁ represents a demand curve that shows consumer purchases being more responsive to a change in the price of the good than demand curve D₂.
D)Both are examples of unitary elastic demand curves.

Question

The exhibit illustrates two possible demand curves for a product, D₁ and D₂. Which of the following is true regarding these demand curves? 
A)Demand curve D₁ represents a demand curve that is relatively more elastic than demand curve D₂. 
B)Demand curve D₁ represents a demand curve that is relatively more inelastic than demand curve D₂. 
C)Demand curve D₁ represents a demand curve that shows consumer purchases being more responsive to a change in the price of the good than demand curve D₂. 
D)Both are examples of unitary elastic demand curves.

Quizplus · Accepted Answer

The Answer of The exhibit illustrates two possible demand curves for a product, D₁ and D₂. Which of the following is true regarding these demand curves? 
A)Demand curve D₁ represents a demand curve that is relatively more elastic than demand curve D₂. 
B)Demand curve D₁ represents a demand curve that is relatively more inelastic than demand curve D₂. 
C)Demand curve D₁ represents a demand curve that shows consumer purchases being more responsive to a change in the price of the good than demand curve D₂. 
D)Both are examples of unitary elastic demand curves.

The Exhibit Illustrates Two Possible Demand Curves for a Product