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:

Underestimate

To assess something as less important, less capable, or lower in quantity than it actually is.

Defensive Self-Esteem

A psychological condition where an individual's self-esteem is formed from defending oneself against criticisms, leading to fragile self-confidence.

Boast

To speak with excessive pride and self-satisfaction about one's achievements, possessions, or abilities.

Criticizes

The act of expressing disapproval or finding faults in something or someone, often with the intention of suggesting possible improvements.