Demand for low budget items, such as candy, is generally ________ than demand for large budget items, such as automobiles.

The downward slope of a demand curve

A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.

Refer to Figure 6-3. Using the midpoint formula, calculate the absolute value of the price elasticity of demand between e and f

A) 0.32 B) 0.4 C) 2.5 D) 3.125