Answer the Question on the Basis of the Following Demand

question 144

Multiple Choice

Answer the question on the basis of the following demand schedule. Which of the following is correct?

• A) Although the slope of the demand curve is constant, price elasticity declines as we move from high to low price ranges.
• B) Although the slope of the demand curve is constant, price elasticity increases as we move from high to low price ranges.
• C) Although the demand curve is convex to the origin, price elasticity of demand is constant throughout.
• D) A steep slope means demand is inelastic; a flat slope means demand is elastic.

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Definitions:

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable being tested and measured, expected to change due to the influence of the independent variable.

Control Group

In an experiment, this group does not receive the treatment under investigation and is used as a benchmark to measure how the other tested groups compare.

Independent Variable

In experimental research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.