Figure 6-6
-Refer to Figure 6-6.As price falls from P A to P B ,the quantity demanded increases most along D 1 therefore,
A) D 1 is unit elastic.
B) D 1 is more inelastic than D 2 or D 3 .
C) D 1 is more elastic than D 2 or D 3
D) D 1 is elastic at P A but inelastic at P B .

Question

Figure 6-6 
-Refer to Figure 6-6.As price falls from P A to P B ,the quantity demanded increases most along D 1 therefore,
A) D 1 is unit elastic. 
B) D 1 is more inelastic than D 2 or D 3 . 
C) D 1 is more elastic than D 2 or D 3 
D) D 1 is elastic at P A but inelastic at P B .

Quizplus · Accepted Answer

Along the demand curve DS1U1B11, the quantity demanded increases at a faster rate in response to a change in price compared to the other demand curves DS1U1B12 and DS1U1B13. This implies that this portion of the demand curve is more elastic than the others. Therefore, option C is correct. Option A is incorrect because unit elasticity means that the percentage change in quantity demanded is equal to the percentage change in price, which is not the case here. Option B is incorrect because it implies that DS1U1B11 is less elastic than the other demand curves, which is not true. Option D is also incorrect because it suggests that the elasticity changes along the same demand curve, which is not the case.

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

Figure 6-6 -Refer to Figure 6-6.As Price Falls from P_A to P_B,the