Which of the Following Statements Is Correct

question 31

Multiple Choice

Which of the following statements is correct?

• A)In the case of a linear demand curve, the slope and the price elasticity of demand are equal at each point on the demand curve.
• B)The slope of the demand curve is some constant value, but the value of the price elasticity coefficient decreases as we move down the demand curve.
• C)The slope of the demand curve is some constant value, but the value of the price elasticity coefficient increases as we move down the demand curve.
• D)There is no connection between the slope of the demand curve and the value of the price elasticity coefficient.

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Definitions:

Microeconomist

An economist specializing in the study of the behavior of individuals and firms in making decisions regarding the allocation of scarce resources.

Macroeconomist

An economist who studies the overall workings of an economy, including issues like inflation, unemployment, and economic growth at a large scale.

Minimum-Wage Laws

A law that establishes the minimum hourly pay rate that employers are legally allowed to offer their workers.

Council Of Economic Advisers

A group of economists who advise the President of the United States on economic policy.