The Figure Given Below Shows the Demand Curves of Two

The figure given below shows the demand curves of two classes of buyers for tickets to a football match. Figure 10.4 D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
In Figure 10.4, the demand curve D₂:

A) has a price elasticity of demand greater than 1.
B) is relatively less price elastic than D₁.
C) is the inverse of the demand curve D₁.
D) has a price elasticity of demand less than 1.
E) represents the demand of the group that is more responsive to price changes.

Correct Answer:

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