Consider Two Demand Curves and the Same Price Change for Both.If

question 54

Multiple Choice

Consider two demand curves and the same price change for both.If the resulting percentage change in quantity demanded is greater for one (D₁) than the other (D₂) ,we can conclude

• A)that D₁ is inelastic and D₂ is elastic.
• B)that D₁ is elastic and D₂ is inelastic.
• C)that D₂ is more elastic than D₁.
• D)that D₁ is more elastic than D₂.
• E)nothing about their relative elasticities.

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Definitions:

British Pounds

The currency of the United Kingdom, symbolized as GBP, and commonly referred to as the pound sterling.

Supply

The total amount of a good or service that is available for purchase at various prices in a given market.

Japanese Yen

The official currency of Japan, used as a medium of exchange and a standard of value within the country.

Upsloping

Describes a curve or line on a graph that shows an increase in value or quantity as it moves from left to right.