The figure given below shows the demand curves of two classes of buyers for tickets to a football match. Figure 10.4 D 1 : Demand curve of group 1 D 2 : Demand curve of group 2 MR 1 : Marginal revenue of group 1 MR 2 : Marginal revenue of group 2 MC: Marginal cost -In Figure 10.4,the demand curve D₂: A)has a price elasticity of demand greater than 1. B)is relatively less price elastic than D₁. C)is the inverse of the demand curve D₁. D)has a price elasticity of demand less than 1. E)represents the demand of the group that is more responsive to price changes.

Question

Quizplus · Accepted Answer

D₂ is relatively less price elastic than D₁, as it is steeper. This means that the group represented by D₂ is less responsive to price changes than the group represented by D₁.

The Figure Given Below Shows the Demand Curves of Two