Use the following to answer question:
-(Table: Price,Quantity Demanded,and Quantity Supplied)Use Table: Price,Quantity Demanded,and Quantity Supplied.The slope of the line representing the relationship between price on the vertical axis and quantity demanded on the horizontal axis is:
A)equal to 1/2.
B)equal to 1.
C)equal to 2.
D)different at different points on the line.

Question

Use the following to answer question: 
-(Table: Price,Quantity Demanded,and Quantity Supplied)Use Table: Price,Quantity Demanded,and Quantity Supplied.The slope of the line representing the relationship between price on the vertical axis and quantity demanded on the horizontal axis is:
A)equal to 1/2. 
B)equal to 1. 
C)equal to 2. 
D)different at different points on the line.

Quizplus · Accepted Answer

The slope of the demand curve is different at different points along the curve. This is because the slope represents the ratio of the change in price to the change in quantity demanded, and this ratio changes as we move along the curve. For example, at higher prices, the slope is likely to be steeper (i.e. more negative) because consumers are more sensitive to price changes and will reduce their purchases more in response to a price increase. At lower prices, the slope is likely to be flatter (i.e. less negative) because consumers are less sensitive to price changes and will only increase their purchases slightly in response to a price decrease.

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