A sign language club made $627.50 from selling popcorn at a festival. The popcorn cost the club $95.00. Which expression represe
2 answers:
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Answer:
d. both the slope and price elasticity of demand are equal to 0.
Step-by-step explanation:
In order to graph the demand curve, the quantity demanded is plotted along x-axis and the price is plotted along y-axis. An image attached below shows the horizontal demand curve.
Horizontal demand curve, as its name indicates, is a horizontal line which is parallel to x-axis. Since, the slope of any line parallel to x-axis is 0, we can conclude that the slope of Horizontal demand curve is 0.
A horizontal demand curve can be observed for a perfectly competitive market. Since, its a perfect competition, the price of a product by all competitors will be the same. In this case, if a firm decides to increase the price, he will loose his market share as no customer will buy the product at increased price. They will rather go with the other competitor who is offering a similar product at lower price.
On the other hand, if a competitor decides to lower his price in such case, he will experience loss. Therefore, the competitors do not have the option to change the price. Therefore, we can say the price elasticity of demand in this case is 0.
So, option D describes the horizontal demand curve correctly.
We are given the following data:
Sample Size = n = 1000
Sample Mean = u = 15 hours
Population Standard Deviation = s = 2 hours
Since we know the population standard deviation, we can use z distribution to find the confidence interval about the mean. z value for 95% confidence interval is 1.96.
Formula for the confidence interval is:
Using the values in the formula, we get:
Therefore, the 95% confidence interval about the population mean is 14.88 hours to 15.12 hours. So B option is the correct answer.