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 2. demand curve d3 is best described as 3. demand curve d2 is best described as 4. demand curve d1 is best described as
Answer
Brief Explanations:
- A perfectly - elastic demand curve is horizontal. D4 is horizontal at price P1, so it is perfectly elastic.
- A flatter demand curve is more elastic than a steeper one. D3 is flatter than D2 and D1, but less elastic than D4.
- D2 is steeper than D3 and less elastic than D3, but more elastic than D1.
- A perfectly - inelastic demand curve is vertical. D1 is vertical at price P1, so it is perfectly inelastic.
Answer:
- perfectly elastic
- less elastic than D4
- less elastic than D3
- perfectly inelastic