A $1.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 5 meals.Which of the following statements is correct?
A) The slope of the demand curve is -1/5;there is insufficient information to determine the price elasticity of demand.
B) The price elasticity of demand is -1/5;there is insufficient information to determine the slope of the demand curve.
C) Both the slope of the demand curve and the price elasticity of demand are equal to -1/5.
D) There is insufficient information to determine either the slope of the demand curve or the price elasticity of demand.
E) The slope of the demand curve is -1/5;the price elasticity of demand is 5.
Correct Answer:
Verified
Q14: Q15: The price elasticity of demand measures the Q16: If a 10 percent rise in the Q17: The concept of elasticity is used to Q18: When calculating the price elasticity of demand,we
A)indicate
