If the Demand Curve for Tacos Is a Downward Sloping

question 422

Multiple Choice

If the demand curve for tacos is a downward sloping straight line, at which of the following prices is the demand the most elastic?

• A) a price of $0.50 per taco
• B) a price of $1.00 per taco
• C) a price of $1.50 per taco
• D) There is not enough information given to determine at which price the demand is most elastic.

---

Definitions:

Wholesaler

A wholesaler is an intermediary entity in the distribution process that buys bulk quantities of goods from manufacturers and sells them to retailers or professional buyers.

Consumers

Individuals or groups that purchase goods and services for personal use.

Service Company

A business entity that provides professional services or expertise instead of physical goods.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.