Question

When a restaurant prices pizza at $10 per slice they sell 100 slices in a night. if they sell pizza for $5 per slice, they sell 300 slices in a night. what is the slope of this demand curve for pizza?

a) 1/40
b) 40
c) -1/40
d) -40

Answer 1

The slope of the demand curve is 40.

Step-by-step explanation:

The demand curve for pizza can be determined by calculating the slope using the formula:

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

Using the given information, we can calculate the change in quantity demanded and change in price:

Change in Quantity Demanded = 300 - 100 = 200 slices

Change in Price = $5 - $10 = -$5

Therefore, the slope of the demand curve is: -200 / -5 = 40

So, the correct answer is option (b) 40.