Question

Suppose your demand schedule for pizza is as follows:

Quantity Demanded: 1 2 3 4 5
Price: $10 $9 $8 $7 $6
What is the slope of the demand curve?
a) $1
b) -$1
c) $2
d) -$2

Answer 1

The slope of the demand curve is -$1.

Step-by-step explanation:

The slope of a demand curve can be determined by observing the change in price and quantity demanded. In this case, we have the following demand schedule:

Quantity DemandedPrice1$102$93$84$75$6

To calculate the slope, we can choose any two points on the demand curve and use the formula:

Slope = (Change in Price) / (Change in Quantity Demanded)

Let's take the points (1, $10) and (2, $9) from the demand schedule:

Slope = ($9 - $10) / (2 - 1) = -$1

Therefore, the slope of the demand curve is -$1.