-Which statement is true?
A)D1 is more elastic than D2.
B)D2 is more elastic than D1.
C)D1 and D2 have the same elasticity.
D)There is no way to determine the relative elasticities of D1 and D2.

Question

-Which statement is true?
A)D1 is more elastic than D2. 
B)D2 is more elastic than D1. 
C)D1 and D2 have the same elasticity. 
D)There is no way to determine the relative elasticities of D1 and D2.

Quizplus · Accepted Answer

Elasticity refers to the responsiveness of quantity demanded to a change in price. If D2 is more elastic than D1, it means that the quantity demanded for D2 changes more significantly with a change in price compared to D1.

-Which Statement Is True