If the slope of a demand curve is equal to -0.1 then
A)demand is inelastic.
B)we don't know whether the demand is elastic or inelastic.
C)the demand is elastic at low prices and inelastic at high prices.
D)as price increases by 10 percent quantity demanded decreases by 1 percent.

Question

Quizplus · Accepted Answer

The slope of the demand curve does not directly indicate elasticity. Elasticity depends on the percentage change in quantity demanded relative to the percentage change in price, not the absolute change.

If the Slope of a Demand Curve Is Equal to -0.1