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 having infinite elasticity 2. demand curve d3 is best described as select 3. demand curve d2 is best described as select more elastic than d4 perfectly inelastic more elastic than d2 perfectly elastic 4. demand curve d1 is best described as

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 having infinite elasticity 2. demand curve d3 is best described as select 3. demand curve d2 is best described as select more elastic than d4 perfectly inelastic more elastic than d2 perfectly elastic 4. demand curve d1 is best described as

Answer

Explanation:

Step1: Recall price - elasticity concepts

Price - elasticity of demand measures the responsiveness of quantity demanded to a change in price. A horizontal demand curve has infinite elasticity, a vertical demand curve is perfectly inelastic, and flatter curves are more elastic than steeper ones.

Step2: Analyze D4

Demand curve D4 is horizontal. At a given price (P_1), consumers will buy an infinite amount at that price and nothing at a higher price. So it has infinite elasticity.

Step3: Analyze D3

Demand curve D3 is flatter than D2 but steeper than D4. It is elastic, meaning that a change in price will lead to a relatively large change in quantity demanded.

Step4: Analyze D2

Demand curve D2 is steeper than D3 but flatter than D1. It is less elastic than D3.

Step5: Analyze D1

Demand curve D1 is vertical. Quantity demanded does not change regardless of the price, so it is perfectly inelastic.

Answer:

  1. having infinite elasticity
  2. elastic
  3. less elastic than D3
  4. perfectly inelastic