Question

Which of the demand curves given in the figure is more elastic? 

• A. F
• B. E
• C. G
• D. H

Hint:

The more elastic the demand curve, the flatter it will appear. Elastic demand is when the quantity demanded changes significantly in response to a price change.

Answer 1

The Correct Option is B

Step 1: Understanding Elasticity of Demand:
Elasticity of demand refers to the responsiveness of the quantity demanded to a change in the price of the good. A demand curve is more elastic if a small change in price leads to a large change in quantity demanded.
Step 2: Analyzing the Demand Curves:
- Option (A) F: Curve F is relatively steep, indicating that the quantity demanded does not change significantly with a price change. This represents inelastic demand.
- Option (B) E: Curve E is flatter, indicating that the quantity demanded responds significantly to changes in price. This represents elastic demand.
- Option (C) G: Curve G appears to be relatively steep, similar to curve F, indicating inelastic demand.
- Option (D) H: Curve H is steeper than curve E, suggesting inelastic demand as well.
Step 3: Conclusion and Answer:
The correct answer is (B) because the flatter curve E represents the more elastic demand, where a small change in price causes a large change in quantity demanded.