Figure: Price Elasticity of Demand Refer to the figure. Which of the four demand curves has the greatest responsiveness to price changes?
A) A
B) B
C) C
D) D

Question

Figure: Price Elasticity of Demand  Refer to the figure. Which of the four demand curves has the greatest responsiveness to price changes?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

Demand curve A has the greatest responsiveness to price changes because it is the steepest curve, indicating a higher price elasticity of demand. This means that a small change in price causes a large change in quantity demanded, making demand more sensitive to changes in price.

Figure: Price Elasticity of Demand Refer to the Figure