(Solved): Use the following graph of demand curves to answer the next question. The vertical axis li ...

Use the following graph of demand curves to answer the next question.

The vertical axis lists P1 and P2. Five decreasing curves intersect each other at the same point and are labeled D1 through D5, from left to right. The point of intersection connects to the vertical axis at P1 and a point at the curve D5 (above the point of intersection) connects to the vertical axis at P2.

Which demand curve is relatively most elastic between P₁ and P₂?

Multiple Choice

D₁

D₂

D₃

D₄