If the Absolute Value of Slope of the Demand Curve

question 30

Multiple Choice

If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is:

• A)0.3.
• B)0.533.
• C)1.6.
• D)1.875.

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Definitions:

Sensations

The physical feelings or perceptions resulting from something that happens to or comes into contact with the body.

Structuralism

An approach in psychology that seeks to understand the structure of the mind by analyzing its components, like sensations and perceptions.

Observable Behavior

Actions or reactions of an individual that can be directly seen and measured.

Psychoanalysis

A therapeutic approach originated by Sigmund Freud that seeks to explore the unconscious mind to understand and treat psychological disorders.