Figure: Demand Elasticities Refer to the Figure

question 68

Multiple Choice

Figure: Demand Elasticities Refer to the figure. It shows two different demand curves. Based on the graph, which statement is TRUE?

• A) Elasticity of demand equals the slope of the curve so demand curve A is more elastic.
• B) Elasticity of demand equals the slope of the curve so demand curve B is more elastic.
• C) Since these two linear demand curves run through a common point we can say that at any given quantity, demand curve A is more elastic than curve B.
• D) We cannot infer anything about elasticity from this diagram because slope does not equal elasticity.

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The action or set of actions specified by symbols or terms in a mathematical or technical context.

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Simplifying or making something easier to comprehend.

Simplify

Simplifying a process or concept to enhance its understandability or execution by minimizing its complexity.

Simplify

The process of reducing a mathematical expression or problem to its most basic form.