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:

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grain, fruits, and vegetables.

Profit-maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit in a business.

Profit

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes involved in sustaining the business.

Demand Curve

A graph illustrating how much of a given product a household would be willing to buy at different prices.