If the Slope of a Demand Curve Is Equal to -0.1

question 24

Multiple Choice

If the slope of a demand curve is equal to -0.1, then________.

• A)demand is inelastic.
• B)we do not know whether the demand is elastic or inelastic.
• C)the demand is elastic at low prices and inelastic at high prices.
• D)as price increases by 10 per cent, quantity demanded decreases by 1 per cent.

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Definitions:

Verbal Agreement

A contract made orally rather than in writing, which can still be legally binding under certain conditions.

Restrict Competition

Legal or business strategies implemented to limit competition within a market, often scrutinized for fairness under competition law.

Void

Refers to a contract or legal agreement that lacks validity and is therefore unenforceable by law.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved to be enforceable.