Question

Price (dollars per unit) 10- 8- When the price is $4 a unit, demand is perfectly elastic. Draw the demand curve for this good. Label it D. When the quantity demanded is 3 million units a year, demand is perfectly inelastic Draw the demand curve for this good. Label it D2. When the price is $8 a unit, the quantity demanded is 1 million units a year, and demand is unit elastic. Draw the demand curve for this good. Label it Dg. When the percentage change in the quantity demanded equals the percentage change in price, the demand curve is 6- 4- 2- O A. a vertical line B. curved toward the origin C. curved away from the origin D. a horizontal line 5 Quantity (millions of units per year) >>> Draw only the objects specified in the question.

Answer 1

Answer: (1) Perfectly elastic demand curve have horizontal line.(Shown as D1 in graph)

(2)Perfectly inelastic demand curve have vertical line(shown as D2 in the graph.

(3)Unit elastic demand curve is shown as D3 in graph.

(4) When proportionate or percentage change in quantity demanded is equal to proportionate or percentage change in price, then demand is said to be unitary elastic . This demand curve is called a rectangular hyperbola which curved away from the origin.

pricelt per unit) Dz to ศ 6 4 Di + 0 2 3 4 5 pleantity (millions of units the year)

Hence, Answer is option (c)