Chapter6: Elasticity
Section: Chapter Questions
Problem 2WNG: As the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to...
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Question
Transcribed Image Text:The figure depicts two demand
functions, D1 and D2. Which of the
following statements is true?
Price
P
P/2
D₁
Q₁/2 Q₁ Q₁/2
D₂
Q₂
Quantity
Transcribed Image Text:Question 7 options:
Demand D1 is less elastic at
point B than demand D2 at
point A.
Demand D1 is more elastic at
point B than demand D2 at
point A.
Demand D1 is inelastic at
point B and demand D2 is
also inelastic at point A.
Demand D1 is elastic at point
B and demand D2 is also
elastic at point A.
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