If the slope of a demand curve is equal to -0.1 then
A) the demand is elastic at low prices and inelastic at high prices.
B) as price increases by 10 percent quantity demanded decreases by 1 percent.
C) we don't know whether the demand is elastic or inelastic.
D) demand is inelastic.
C
Economics
You might also like to view...
Which of the following is not a tool of the Fed?
A) the discount rate B) reserve requirements C) open market operations D) the proportion of money held as currency
Economics
The situation where politicians make decisions that will raise their chances of reelection, even if those decisions are detrimental to the general public, is referred to as the:
A. Moral hazard problem B. Principal-agent problem C. Adverse selection problem D. Common good problem
Economics