The Figure Given Below Shows the Demand Curves for Five

question 18

Multiple Choice

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Refer to Figure 6.1. Which of the following is true when prices increase from P₁ to P₂?

• A)The change in quantity demanded is larger for C than D, thus the demand for D is relatively less elastic than it is for C.
• B)The change in the quantity demanded following the price increase is the largest for C.
• C)The change in the quantity demanded following the price increase is the least for D.
• D)The demand for E is perfectly inelastic.
• E)The change in quantity demanded is larger for C than A, thus the demand for C is more elastic than it is for A.

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