Figure 5-2
-Refer to Figure 5-2. As price falls from Pa to Pb, which demand curve represents the most elastic demand?
A) D1
B) D2
C) D3
D) All of the above are equally elastid.

Question

Figure 5-2 
-Refer to Figure 5-2. As price falls from Pa to Pb, which demand curve represents the most elastic demand?
A) D1 
B) D2 
C) D3 
D) All of the above are equally elastid.

Quizplus · Accepted Answer

D1 is the most elastic demand because it has the steepest slope. This means that a small change in price will lead to a large change in quantity demanded.

Figure 5-2 -Refer to Figure 5-2. as Price Falls from Pa to from Pa