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For multiple select questions (square boxes), there could be zero, 1, 2, or as many as all of the answers that are correct and can be selected.

A $2.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 6 meals. Which of the following statements are incorrect?

A. the slope of the demand curve is -1/3

B. the price elasticity of demand is 3

C. both the slope of the demand curve and the price elasticity of demand are equal -1/3

D. both the slope of the demand curve and the price elasticity of demand are equal 3

E. there is insufficient information to determine either the slope of the demand curve or the price elasticity of demand

F. there is insufficient information to determine the price elasticity of demand.

business economics

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Answer 1

Answer #1

Option A and F are correct while the statements B, C, D, E are incorrect.

With the given information we can definitely calculate the slope of the demand curve which is given as the change in price divided by change in quantity = 2 ÷ -6 = -1/3//
It is not possible to calculate the price elasticity of demand as we are given only the change in demand for 6 meals with respect to the change in price which is certainly an insufficient information.

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Answer 2

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