Consider two demand curves and the same price change for both.If the resulting percentage change in quantity demanded is greater for one (D₁)than the other (D₂),we can conclude A)that D₁ is inelastic and D₂ is elastic. B)that D₁ is elastic and D₂ is inelastic. C)that D₂ is more elastic than D₁. D)that D₁ is more elastic than D₂. E)nothing about their relative elasticities.

Question

Quizplus · Accepted Answer

The greater percentage change in quantity demanded indicates that the demand curve D₁ is more responsive to price changes, which means it is more elastic than the demand curve D₂. Therefore, choice D is correct.

Consider Two Demand Curves and the Same Price Change for Both.If