Question

PLEASE READ VERY CAREFUlLY & SHOW ALL THE CALCULATIONS & WRITING MUST BE CLEAR TO READ! THANKS!

The corindate points:

A: (200,200)

B: (140,200)

C: 140,240)

D: (160,260)

E: (200,260)

4. The variety of demand curves The following graph displays four demand curves (LL, MM, NN, and OO) that intersect at point A. 400尘 360 320 200, 260 280 - DIE 240 - 200 1 LU 160 120 T 80 T 40 0 4080120 10 200 240 280 320 360 400 QUANTITY (Units)

Answer 1

Between points A and C, MM curve is inelastic..False.

Because change in prices cause change in quantity consumed and hence is elastic.

Between points A and B, Ll curve is perfectly inelastic. True.

Because prices shall have no effect with change in quantity supplied.

Curve MM is less elastic between points A and C, than curve NN between points A and D. True

Because elasticity of curve MM is - 1 whereas for NN is - 2.