referring to the graph above, compare the four demand curves in terms of their price elasticity at price p1…

referring to the graph above, compare the four demand curves in terms of their price elasticity at price p1: 1. demand curve d4 is best described as select 2. demand curve d3 is best described as select 3. demand curve d2 is best described as select 4. demand curve d1 is best described as select

referring to the graph above, compare the four demand curves in terms of their price elasticity at price p1: 1. demand curve d4 is best described as select 2. demand curve d3 is best described as select 3. demand curve d2 is best described as select 4. demand curve d1 is best described as select

Answer

Brief Explanations:

  1. Demand curve D4 is horizontal at price P1. In economics, a horizontal demand curve implies that consumers are willing to buy an infinite - amount at price P1 and zero at any other price, so it has infinite elasticity.
  2. Demand curve D3 is flatter than D2. The flatter the demand curve, the more elastic the demand. So D3 is more elastic than D2, which means D2 is less elastic than D3.
  3. Demand curve D2 is a normal downward - sloping demand curve. Compared to D1 (a vertical demand curve), D2 is more elastic as a change in price will lead to a change in quantity demanded for D2 while quantity demanded does not change with price for D1.
  4. Demand curve D1 is vertical at price P1. A vertical demand curve means that the quantity demanded is the same regardless of the price, so it has zero elasticity.

Answer:

  1. having infinite elasticity
  2. less elastic than D2
  3. less elastic than D1
  4. having zero elasticity