Figure 6-6
-Refer to Figure 6-6.As price falls from PA to PB,the quantity demanded increases most along D1;therefore
A)D1 is unit elastic.
B)D1 is more inelastic than D2 or D3.
C)D1 is more elastic than D2 or D3
D)D1 is elastic at PA but inelastic at PB.

Question

Figure 6-6 
-Refer to Figure 6-6.As price falls from PA to PB,the quantity demanded increases most along D1;therefore
A)D1 is unit elastic. 
B)D1 is more inelastic than D2 or D3. 
C)D1 is more elastic than D2 or D3 
D)D1 is elastic at PA but inelastic at PB.

Quizplus · Accepted Answer

As the quantity demanded increases more along D1, it suggests that D1 is more responsive to changes in price, making it more elastic than D2 or D3.

Figure 6-6 -Refer to Figure 6-6.As Price Falls from PA to PB,the