Graph 5-3 -In Graph 5-3, as price falls from P_A to P_B, which demand curve is least elastic? A) D₁ B) D₂ C) D₃ D) all of the above are equally elastic

Question

Quizplus · Accepted Answer

The demand curve D₃ is the least elastic because it has the steepest slope or the smallest absolute value of elasticity coefficient. This implies that changes in the price level have a smaller effect on the quantity demanded compared to the other two demand curves.

Graph 5-3 -In Graph 5-3, as Price Falls from PA to PB

Graph 5-3 -In Graph 5-3, as Price Falls from P_A to P_B