The Demand Curves for Good a and B Are Depicted

question 12

Multiple Choice

The demand curves for good A and B are depicted in the following graph.We can conclude that ________.

• A) the price elasticity of demand for good A is smaller than good B
• B) the price elasticity of demand for good A is larger than good B
• C) good A is perfectly elastic
• D) good A is perfectly inelastic.

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