The
following figure depicts two demand curves, D1 (steeper) and D2 (shallower) .

We can re-write the definition of elasticity from the textbook as:

So, it is equal to the negative of the product of two ratios: (i) price over quantity, P/Q, and (ii) change in quantity over change in price, ΔQ/ΔP, which is the slope of the demand curve. For both of the demand curves above, the slope is constant.

By convention, the demand curve is always drawn with Q on the x-axis, so as drawn, the slope of the demand curve is:

Which of the following statements is correct?

Question

The
following figure depicts two demand curves,  D1 (steeper) and D2 (shallower) . 
  
 We can re-write the definition of elasticity from the textbook as:

So, it is equal to the negative of the product of two ratios: (i) price over quantity, P/Q, and (ii) change in quantity over change in price, ΔQ/ΔP, which is the slope of the demand curve. For both of the demand curves above, the slope is constant. 
 
 By convention, the demand curve is always drawn with Q on the x-axis, so as drawn, the slope of the demand curve is:

Which of the following statements is correct?

Answer

At the point where the two curves cross  D2 must be more elastic than D1.

Answer

Demand curve D2 is always less elastic than demand curve D1.

Answer

Demand curve D1 is always more elastic than D2.

Answer

The slope of the demand curve gives you enough information to work out elasticity.

Crowdly

The following figure depicts two demand curves, D1 (steeper) and D2 (shallower)...

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