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.