If the Variable on the Vertical Axis Increases by 20

question 53

Multiple Choice

If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is

• A) 0.25.
• B) 4.
• C) 15.
• D) 100.

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Definitions:

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change in response to price changes.

Deadweight Loss

An economic inefficiency that occurs when the total welfare in a market is not maximized, resulting from distortions such as taxes, subsidies, or monopolies.

Excise Tax

A tax imposed on specific goods, services, or activities, often included in the price of products like tobacco, alcohol, and fuel, designed to discourage their use or generate revenue.

Perfectly Inelastic

A market condition where demand does not change regardless of changes in price.