Figure 5-2 -Refer to Figure 5-2.As Price Falls from Pa to Pb,we

question 181

Multiple Choice

Figure 5-2
-Refer to Figure 5-2.As price falls from Pa to Pb,we could use the three demand curves to calculate three different values of the price elasticity of demand.Which of the three demand curves would produce the smallest elasticity?

• A)D1
• B)D2
• C)D3
• D)All of the above are equally elastic.

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