Assume That the Demand Curve for Sunblock Is Linear and Downward

question 170

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 is 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.

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Definitions:

Rents

Payments made periodically by a tenant to a landlord in exchange for the use of land, a building, or other property.

Supply of Loanable Funds

The total amount of funds that lenders are willing to loan at a given interest rate in an economy.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to changes in its price.

Demand for Land

The desire or need by individuals or businesses to purchase or lease land for various uses such as agriculture, commercial, or residential purposes.