Consider the demand for a narrowly defined good, such as a salmon filet. You can plot...

 

Transcribed Image Text:

Consider the demand for a narrowly defined good, such as a salmon filet. You can plot three different straight lines through the three points X, Y, and Z on this graph. Place the blue line (circle symbol) so that it goes through two of the points and shows the most likely demand curve for this type of good. Hint: Consider the relative elasticities of the different possible demand curves. PRICE (Dollars per salmon filet) 5 0 0 * Y 4 6 Z + x + 2 8 10 12 14 SALMON FILETS (Millions of kilograms per week) 16 Demand Curve Consider the demand for a narrowly defined good, such as a salmon filet. You can plot three different straight lines through the three points X, Y, and Z on this graph. Place the blue line (circle symbol) so that it goes through two of the points and shows the most likely demand curve for this type of good. Hint: Consider the relative elasticities of the different possible demand curves. PRICE (Dollars per salmon filet) 5 0 0 * Y 4 6 Z + x + 2 8 10 12 14 SALMON FILETS (Millions of kilograms per week) 16 Demand Curve