The Slope of a Demand Curve Is Not Used to Measure

question 206

Multiple Choice

The slope of a demand curve is not used to measure the price elasticity of demand because

• A)the slope of a linear demand curve is not constant.
• B)the slope of a line cannot have a negative value.
• C)the measurement of slope is sensitive to the units chosen for price and quantity.
• D)the slope of the demand curve does not tell us how much quantity changes as price changes.

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Definitions:

Cost System

A method used by firms to track, record, and analyze costs associated with their operations, typically to improve efficiency or profitability.

Kilos

A metric unit of mass equal to one thousand grams or approximately 2.20462 pounds.

Direct Materials

Raw materials that can be directly traced to the production process and are a significant part of the finished product.

Raw Material

The basic substances or components that are processed and transformed into finished goods in manufacturing.