Assume That the Demand Curve for Sunblock Is Linear and Downward

question 232

Multiple Choice

Assume that the demand curve for sunblock is linear and downward sloping.Which of the following statements about the slope of the demand curve for sunblock and the price elasticity of demand for sunblock are true?

• A)The slope and the price elasticity of demand are constant at all points along the demand curve for sunblock.
• B)The slope is constant, but the price elasticity of demand is not constant at all points along the demand curve for sunblock.
• C)The slope is not constant, but the price elasticity of demand is constant at all points along the demand curve for sunblock.
• D)The slope of the demand curve for sunblock is constant and equal to zero; demand is perfectly inelastic.

---

Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced, indicating the cost per unit of output.

Marginal Cost

The increased expenditure resulting from manufacturing one more unit of a good or service.

Declining

A term describing a situation where a certain quantity or quality is decreasing over time.

Marginal Cost

The additional expense associated with manufacturing one more unit of a specific item.