The Figure Given Below Shows the Demand Curves of Two

question 108

Multiple Choice

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-In Figure 11.4, the demand curve D₂:

• A)has a price elasticity of demand greater than 1.
• B)is relatively less price elastic than D₁.
• C)is the inverse of the demand curve D₁.
• D)has a price elasticity of demand less than 1.
• E)represents the demand of the group that is more responsive to price changes.

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Definitions:

Distribution Extremes

The varying strategies in distributing products, ranging from intensive distribution, where products are available everywhere, to exclusive distribution, where products are available only in select outlets.

Geographical Area

A defined physical region or space characterized by certain geographical features or boundaries.

Financial Service

Economic services provided by the finance industry, which encompasses a broad range of businesses that manage money.

Novice Investor

An individual who is new to investing, lacking in experience and knowledge in making investment decisions.