Figure 4.6 -Refer to Figure 4.6.As price falls from P_A to P_B, the quantity demanded increases most along D_1;therefore, A)D₁is unit elastic. B)D₁ is more inelastic than D₂or D₃. C)D₁ is more elastic than D₂or D₃ D)D₁ is elastic at P_A but inelastic at P_B.

Question

Quizplus · Accepted Answer

The slope of D₁ is steeper than the slopes of D₂ and D₃, indicating that the quantity demanded is more responsive to changes in price along D₁. This means that D₁ is more elastic than D₂ and D₃.

Figure 4.6 -Refer to Figure 4.6.As Price Falls from PA to PB

Figure 4.6 -Refer to Figure 4.6.As Price Falls from P_A to P_B