Figure 6-6

-Refer to Figure 6-6.As price falls from PA to PB, the quantity demanded increases most along D₁; therefore,
A)D₁ is unit elastic.
B)D₁ is more inelastic than D₂ or D₃.
C)D₁ is more elastic than D₂ or D₃.
D)D₁ is elastic at PA but inelastic at PB.

Question

Figure 6-6
 
-Refer to Figure 6-6.As price falls from PA to PB, the quantity demanded increases most along D₁; therefore,
A)D₁ is unit elastic. 
B)D₁ is more inelastic than D₂ or D₃. 
C)D₁ is more elastic than D₂ or D₃. 
D)D₁ is elastic at PA but inelastic at PB.

Quizplus · Accepted Answer

As price falls from PA to PB, the quantity demanded increases most along D₁, which implies that D₁ is more responsive to price changes, i.e., more elastic than D₂ or D₃. Therefore, the correct choice is C.

Figure 6-6 -Refer to Figure 6-6.As Price Falls from PA to PB