suppose that there were 25 people who had a reservation price of 500 and the 26th person had a reservation price of 200 what would the demand curve look like?

Question

Business

Camryn Ferrell

22 January, 12:45

suppose that there were 25 people who had a reservation price of 500 and the 26th person had a reservation price of 200 what would the demand curve look like?

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Answers (1)

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Sydney Clements · Answer 1

The demand curve would be a downward straight line graph.

Explanation:

This type of curve is referred to as inelastic demand curve because the decrease in price would not result to an increase in quantity purchased as explained by the question. Majority of the reservation, precisely 25 people from the question are willing to pay reservation proce of 500 as compared to one person whose reservation is different.