The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Suppose the value of price elasticity of demand for goods manufactured by firms A, B, C, and D are 0, -0.8, -1, and -1.5 respectively. The demand for the good will be elastic for:
A)firms A, B, C, and D.
B)firms B, C, and D.
C)only firm A.
D)firms C and D only.
E)only firm D.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Suppose the value of price elasticity of demand for goods manufactured by firms A, B, C, and D are 0, -0.8, -1, and -1.5 respectively. The demand for the good will be elastic for:
A)firms A, B, C, and D. 
B)firms B, C, and D. 
C)only firm A. 
D)firms C and D only. 
E)only firm D.

Quizplus · Accepted Answer

The demand for the good will be elastic only for firm D because the price elasticity of demand for firm D is -1.5, which is less than -1.

The Figure Given Below Shows the Demand Curves for Five