(Figure: Calculating Elasticities) Refer to the figure. Theelasticity of demand in the left panel is ________ the elasticity ofdemand in the right panel.
A)greater than
B)less than
C)equal to
D)a long-run version of

Question

(Figure: Calculating Elasticities) Refer to the figure. Theelasticity of demand in the left panel is ________ the elasticity ofdemand in the right panel.
A)greater than 
B)less than 
C)equal to 
D)a long-run version of

Quizplus · Accepted Answer

The left panel shows a steeper demand curve compared to the right panel, indicating a higher price elasticity of demand. Therefore, the elasticity of demand in the left panel is less than the elasticity of demand in the right panel.

(Figure: Calculating Elasticities) Refer to the Figure