Which of the Following Statements About Demand and Price Elasticity

question 50

Multiple Choice

Which of the following statements about demand and price elasticity of demand is TRUE?

• A) As the demand curve has a positive slope, the price elasticity of demand is positive.
• B) As the demand curve has a negative slope, the price elasticity of demand is negative.
• C) As the demand curve has a positive slope, the price elasticity of demand is negative.
• D) As the demand curve has a negative slope, the price elasticity of demand is positive.

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Definitions:

Foreign Aid

Financial assistance provided by one country to another, often aimed at promoting development and welfare.

Assets Abroad

Financial holdings or investments located outside one's home country, which can include bank accounts, real estate, stocks, and bonds.

Money Outflow

The movement of money out of a particular country, market, or economic sector, often to foreign countries or investments.

Balance of Payments

A comprehensive record of all monetary transactions between a country and the rest of the world over a specific period, including trade, financial transfers, and investments.