Rank the demand curves in the figure below in order of greatest to least price elasticity of demand at their in common intersection point.
A)A, B, C.
B)B, C, A.
C)B, A, C.
D)C, A, B.
E)none of the above.

Question

Rank the demand curves in the figure below in order of greatest to least price elasticity of demand at their in common intersection point. 
A)A, B, C. 
B)B, C, A. 
C)B, A, C. 
D)C, A, B. 
E)none of the above.

Quizplus · Accepted Answer

At the common intersection point, the demand curve with the greatest price elasticity of demand will be the flatter one, as it is more responsive to changes in price. So, curve B would be the one with the greatest elasticity, followed by A, and then C. Thus, the correct ranking is B, A, C which is listed only in choice C.

Rank the Demand Curves in the Figure Below in Order