Answer the question on the basis of the following demand schedule: $\begin{array}{l}
\begin{array}{ccc}
&\text { Quantity }\
\underline{\text { Price} } & \underline{\text { Demanded}} \
\$6 & 1 \
5 & 2 \
4 & 3 \
3 & 4 \
2 & 5 \
1 & 6
\end{array}
\end{array}$ Refer to the data.Which of the following is correct?
A) Although the slope of the demand curve is constant,price elasticity declines as we move from high to low price ranges.
B) Although the slope of the demand curve is constant,price elasticity increases as we move from high to low price ranges.
C) Although the demand curve is convex to the origin,price elasticity of demand is constant throughout.
D) A steep slope means demand is inelastic;a flat slope means demand is elastic.

Question

Answer the question on the basis of the following demand schedule: $\begin{array}{l}
\begin{array}{ccc}
&\text { Quantity }\
\underline{\text { Price} } &  \underline{\text { Demanded}} \
 \$6 & 1 \
5 &  2 \
4 &  3 \
3 &  4 \
2 &  5 \
1 &  6
\end{array}
\end{array}$ Refer to the data.Which of the following is correct?
A) Although the slope of the demand curve is constant,price elasticity declines as we move from high to low price ranges.
B) Although the slope of the demand curve is constant,price elasticity increases as we move from high to low price ranges.
C) Although the demand curve is convex to the origin,price elasticity of demand is constant throughout.
D) A steep slope means demand is inelastic;a flat slope means demand is elastic.

Quizplus · Accepted Answer

The slope of the demand curve is constant (a straight line), indicating a constant change in quantity demanded for a given change in price. However, price elasticity of demand, which measures the responsiveness of quantity demanded to a change in price, declines as we move down the demand curve from high to low price ranges. This is because the percentage change in quantity demanded becomes smaller relative to the percentage change in price as we move to lower prices and higher quantities.

Answer the Question on the Basis of the Following Demand