A Straight- Line Demand Curve with Negative Slope Intersects the Horizontal

question 88

Multiple Choice

A straight- line demand curve with negative slope intersects the horizontal axis at 100 tonnes per week. At the midpoint on the demand curve (corresponding to 50 tonnes per week) the price elasticity of demand is

• A) 1.0.
• B) 0.5.
• C) 0.
• D) unknown without more information.

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