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AP® Microeconomics

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Demand Graph: Elasticity and Normal v. Inferior Goods

APMICR-OYXXII

Based on the above graph, if the area represented by 0P1BQ1 is a larger area than 0P2AQ2, which of the following is true?

A

This is a normal good.

B

This is an inferior good.

C

Demand for this product is inelastic when price increases from P1 to P2.

D

Demand for this product is elastic when price increases from P1 to P2.

E

Demand for this product is unit elastic when price increases from P1 to P2.