The Exhibit Illustrates Two Possible Demand Curves for a Product

question 218

Multiple Choice

The exhibit illustrates two possible demand curves for a product, D₁ and D₂. Which of the following is true regarding these demand curves?

• A) Demand curve D₁ represents a demand curve that is relatively more elastic than demand curve D₂.
• B) Demand curve D₁ represents a demand curve that is relatively more inelastic than demand curve D₂.
• C) Demand curve D₁ represents a demand curve that shows consumer purchases being more responsive to a change in the price of the good than demand curve D₂.
• D) Both are examples of unitary elastic demand curves.

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Definitions:

Contradictory Attitudes

Holding conflicting beliefs or feelings towards a particular subject, object, or person.

Conflict

A situation or process through which individuals, groups, or ideas are in opposition and engaged in a struggle for dominance, agreement, or resolution.

Cognitive Dissonance

The psychological discomfort or stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Boring Task

An activity that lacks interest or excitement, often leading to a state of weariness or impatience.