The following graph displays four demand curves (LL, MM, NN, and OO) that intersect at point A.
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PRICE (Dollars per unit)
QUANTITY (Units)
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M
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N
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O
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Using the graph, complete the table that follows by indicating whether each statement is true or false.
Statement
True
False
Between points A and C, curve MM is inelastic.

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

Between points A and B, curve LL is perfectly elastic.

To evaluate whether each statement is **True** or **False**, we need to assess the behavior of the demand curves (LL, MM, NN, and OO) relative to elasticity. Here's a breakdown of each statement:

### **1. Between points A and C, curve MM is inelastic.**
- **Elasticity** refers to how sensitive the quantity demanded is to changes in price.
- A **curve is inelastic** when a change in price leads to a relatively smaller change in quantity demanded.
- From the graph, if MM shows a relatively steep slope between points A and C, this would imply inelasticity, as the quantity demanded doesn’t change much despite price changes. If MM is relatively flat, it indicates elastic behavior.
  
  **Answer**: It depends on the shape of curve MM between A and C. If it's steep, the statement is true; if it's flat, it would be false. Based on typical graph layouts, we would expect MM to be steeper and hence **inelastic** between A and C.  
  **Likely Answer**: **True** (if MM is steep between A and C).

### **2. Curve NN is less elastic between points A and D than curve MM is between points A and C.**
- To compare the elasticity of NN and MM, we look at how the quantity changes for a given price change.
- If **curve NN is less elastic** than MM, it means that for a given price change, the quantity demanded for NN changes less than for MM. If NN is steeper than MM, NN is less elastic.
  
  **Answer**: If curve NN is steeper between A and D than MM between A and C, then the statement is true.  
  **Likely Answer**: **True** (if NN is steeper than MM).

### **3. Between points A and B, curve LL is perfectly elastic.**
- A **perfectly elastic demand curve** is horizontal, indicating that any change in price leads to an infinite change in quantity demanded.
- Between points A and B, if curve LL is a horizontal line, then the demand is perfectly elastic. If LL is sloped, it is not perfectly elastic.
  
  **Answer**: If LL is horizontal between A and B, the statement is true. If not, it is false.  
  **Likely Answer**: **False** (unless the curve is flat).

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### Summary of likely answers:
1. **True** – MM is inelastic between A and C.
2. **True** – NN is less elastic between A and D than MM is between A and C.
3. **False** – LL is not perfectly elastic between A and B unless LL is flat.

Would you like further details or clarifications on any of these concepts?

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### 5 related questions:
1. How is the elasticity of demand calculated using price and quantity data?
2. What factors determine whether a demand curve is elastic or inelastic?
3. How does the slope of a demand curve relate to its elasticity?
4. Can a curve be elastic in one section and inelastic in another? How would that work?
5. How do perfectly elastic and perfectly inelastic demand curves appear on a graph?

### Tip:  
Elasticity is not constant along most demand curves. Even if a curve is relatively elastic in one range, it could become inelastic in another.

The following graph displays four demand curves (LL, MM, NN, and OO) that intersect at point A. Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement: 1. Between points A and C, curve MM is inelastic. 2. Curve NN is less elastic between points A and D than curve MM is between points A and C. 3. Between points A and B, curve LL is perfectly elastic.

Analyze demand curves LL, MM, NN, and OO to understand elasticity between points A, B, C, and D. This problem covers economic concepts such as elasticity of demand and law of demand. Suitable for high school students studying economics.

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