Figure 6-6 -Refer to Figure 6-6. As price falls from P_A to P_B, the quantity demanded increases the most along D_1;therefore A) D₁is unit elastic. B) D₁ is more inelastic than D₂or D₃. C) D₁ is more elastic than D₂or D₃. D) D₁ is elastic at P_A but inelastic at P_B.

Question

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D₁ is more elastic than D₂ or D₃ because the quantity demanded increases the most along D₁ as price falls, indicating a higher responsiveness to price changes.

Figure 6-6 -Refer to Figure 6-6. as Price Falls from PA to from PA

Figure 6-6 -Refer to Figure 6-6. as Price Falls from P_A to from P_A