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Question
Consider the above figure. Which of the following statements is correct?
A) In any range of prices encompassing the crossing point of the two demand curves, the price elasticity of demand associated with demand curve D 1 is equal to the price elasticity of demand associated with demand curve D 2.
B) In any range of prices encompassing the crossing point of the two demand curves, the price elasticity of demand associated with demand curve D 1 is less than the price elasticity of demand associated with demand curve D 2.
C) In any range of prices encompassing the crossing point of the two demand curves, the price elasticity of demand associated with demand curve D 1 is greater than the price elasticity of demand associated with demand curve D 2.
D) In any range of prices encompassing the crossing point of the two demand curves, the price elasticity of demand is infinite.
Answer
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