Home /
Expert Answers /
Economics /
use-the-following-graph-of-demand-curves-to-answer-the-next-question-the-vertical-axis-li-pa329

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 P_{1} and P_{2}?

Multiple Choice

D_{1}

D_{2}

D_{3}

D_{4}

Based on the given information the graph becomes as follows: