A Downward-Sloping Line That Makes a 45-Degree Angle with the Horizontal

question 98

Multiple Choice

A downward-sloping line that makes a 45-degree angle with the horizontal and vertical axes has a slope of:

• A) zero.
• B) 1.
• C) -1.
• D) infinity.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Price Floor

A government- or authority-set minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.

Equilibrium Price

A price level where the demand for a product matches the supply, ensuring that every buyer finds a seller and vice versa, leading to market stability.

Temporary Surplus

A situation where the supply of a product exceeds its demand for a short period of time.