The Exhibit Illustrates Two Possible Demand Curves for a Product

Multiple Choice

The exhibit illustrates two possible demand curves for a product, D₁ and D₂. Which of the following is true regarding these demand curves?

A) Demand curve D₁ represents a demand curve that is relatively more elastic than demand curve D₂.
B) Demand curve D₁ represents a demand curve that is relatively more inelastic than demand curve D₂.
C) Demand curve D₁ represents a demand curve that shows consumer purchases being more responsive to a change in the price of the good than demand curve D₂.
D) Both are examples of unitary elastic demand curves.