The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4 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 11.4, 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

The demand curve D₂ is relatively less price elastic than D₁ because it is steeper (has a greater slope) than D₁. This means that a change in price will result in a proportionately smaller change in quantity demanded for group 2, indicating that this group is less responsive to price changes.

The Figure Given Below Shows the Demand Curves of Two