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The Graph Below Illustrates Three Demand Curves

Question 39

Multiple Choice

The graph below illustrates three demand curves.
The graph below illustrates three demand curves. -Refer to the graph above to answer this question.Which of the following statements is correct? A) The price elasticity of demand between points A and B on D<sub>2</sub> is 0.5. B) D1 illustrates an inferior good. C) The slope of all three demand curves is constant. D) The shift from D<sub>1</sub> to D<sub>2</sub> could illustrate a change in the quantity demanded for a product as a result of a decrease in the price of a substitute good.
-Refer to the graph above to answer this question.Which of the following statements is correct?


A) The price elasticity of demand between points A and B on D2 is 0.5.
B) D1 illustrates an inferior good.
C) The slope of all three demand curves is constant.
D) The shift from D1 to D2 could illustrate a change in the quantity demanded for a product as a result of a decrease in the price of a substitute good.

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