Figure 5-2
-Refer to Figure 5-2.As price falls from Pa to Pb,which demand curve represents the most elastic demand?
A)D1
B)D2
C)D3
D)All of the above are equally elastic.

Question

Figure 5-2 
-Refer to Figure 5-2.As price falls from Pa to Pb,which demand curve represents the most elastic demand?
A)D1 
B)D2 
C)D3 
D)All of the above are equally elastic.

Quizplus · Accepted Answer

The demand curve D1 has a steeper slope than D2 and D3, indicating that a small change in price results in a large change in quantity demanded. This means that demand is more price elastic, making it the most elastic demand curve among the three options. As price falls from Pa to Pb, demand for D1 will show a relatively larger increase compared to D2 and D3.

Figure 5-2 -Refer to Figure 5-2.As Price Falls from Pa to Pb,which