If the Slope of a Demand Curve Is Equal to -0.1

question 179

Multiple Choice

If the slope of a demand curve is equal to -0.1 then

• A)demand is inelastic.
• B)we don't know whether the demand is elastic or inelastic.
• C)the demand is elastic at low prices and inelastic at high prices.
• D)as price increases by 10 percent quantity demanded decreases by 1 percent.

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Definitions:

Total Taxes

The comprehensive amount of taxes paid by an individual or entity, encompassing federal, state, and local taxes.

Individual Income Tax

A tax levied on the income of individuals or households by the government.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation.

Marginal Tax Rate

The tax rate that applies to each additional dollar of income, indicating how much of the next dollar earned will be taken in taxes.