Figure: Demand Elasticities Refer to the Figure

question 91

Multiple Choice

Figure: Demand Elasticities Refer to the figure. It shows two different demand curves. Based on the graph, which statement is TRUE?

• A) Elasticity of demand equals the slope of the curve so demand curve A is more elastic.
• B) Elasticity of demand equals the slope of the curve so demand curve B is more elastic.
• C) Since these two linear demand curves run through a common point we can say that at any given quantity, demand curve A is more elastic than curve B.
• D) We cannot infer anything about elasticity from this diagram because slope does not equal elasticity.

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