Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

On the diagram, D1D1 is a straight-line demand curve, while D2D2 is a rectangular hyperbola curve. Which statement is correct?

  • AD2D2 is more elastic than D1D1 at point M.
  • BD2D2 is more elastic than D1D1 at point N.
  • CThe elasticity of demand increases on moving down both curves.
  • DThe elasticity of demand is inelastic at point M on both curves.

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