The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Refer to Figure 6.1. The demand curve B is:
A)more elastic compared to demand curve E.
B)less elastic compared to demand curve C.
C)perfectly elastic.
D)more elastic compared to demand curve D.
E)an example of a unit-elastic demand curve.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Refer to Figure 6.1. The demand curve B is:
A)more elastic compared to demand curve E. 
B)less elastic compared to demand curve C. 
C)perfectly elastic. 
D)more elastic compared to demand curve D. 
E)an example of a unit-elastic demand curve.

Quizplus · Accepted Answer

Demand curve B is less elastic compared to demand curve C because it is steeper. Steeper demand curves are generally less elastic as they indicate a smaller change in quantity demanded in response to a given change in price. Demand curve B is not perfectly elastic or unit-elastic, as a change in price would still result in a change in quantity demanded. Demand curve B is also more elastic compared to demand curve D as D is steeper than B. However, there is not enough information to determine whether B is more or less elastic compared to demand curve E.

The Figure Given Below Shows the Demand Curves for Five