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:

Cohesion

The force or process that unites members of a group, leading to a feeling of solidarity and unity.

Productivity

The measure of efficiency in which goods or services are produced, often evaluated in terms of output over a given period.

Aronson And Mills

Refers to researchers who developed the theory of cognitive dissonance through experiments that demonstrated how effort can influence attitude change.

Cognitive Dissonance

A psychological phenomenon where there is a feeling of discomfort caused by holding contradictory beliefs, values, or attitudes.