The Diagram Shows Two Product Demand Curves

question 330

Multiple Choice

The diagram shows two product demand curves. On the basis of this diagram, we can say that

• A)over range P₁P₂, price elasticity of demand is greater for D₁ than for D₂.
• B)over range P₁P₂, price elasticity of demand is greater for D₂ than for D₁.
• C)over range P₁P₂, price elasticity is the same for the two demand curves.
• D)not enough information is given to compare price elasticities.

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Definitions:

Behavior

The actions or reactions of an individual in response to external or internal stimuli.

Postdecisional Dissonance

Postdecisional dissonance is the psychological discomfort experienced after making a difficult choice, often leading individuals to justify their decision or devalue the rejected alternatives to reduce the dissonance.

Selective Exposure

The tendency of individuals to favor information that reinforces their pre-existing views while avoiding contradictory information.

Regret

A feeling of sadness, repentance, or disappointment over something that has happened or been done.