Figure 7-11 -Refer to Figure 7-11. As price falls from P_A to P_B, which demand curve represents the most elastic demand? A) D₁ B) D₂ C) D₃ D) All of the above are equally elastic.

Question

Quizplus · Accepted Answer

The most elastic demand curve is the one that shows the largest change in quantity demanded for a given change in price. D₁ would represent the most elastic demand if it shows the greatest horizontal movement (change in quantity) as price falls from P_A to P_B.

Figure 7-11 -Refer to Figure 7-11. as Price Falls from PA to from PA

Figure 7-11 -Refer to Figure 7-11. as Price Falls from P_A to from P_A