Use the following to answer questions :
Figure 5-1
-Refer to Figure 5-1.What is the slope of the total market demand curve at P = 3?
A)17.5
B)about .20
C)about -.06
D)about -.20
E)-17.5

Question

Use the following to answer questions :
Figure 5-1  
-Refer to Figure 5-1.What is the slope of the total market demand curve at P = 3?
A)17.5 
B)about .20 
C)about -.06 
D)about -.20 
E)-17.5

Quizplus · Accepted Answer

The slope of the total market demand curve at a given point is calculated by the change in quantity demanded divided by the change in price. At P = 3, if the demand curve is linear and downward sloping, a negative slope is expected, indicating that as price decreases, quantity demanded increases. Among the options, C) about -.06 is the only negative value that represents a typical slope magnitude for a demand curve, suggesting a small decrease in price leads to an increase in quantity demanded.

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