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3 years ago

Describe the slope of the demand curve? How does the slope reflect the law of demand?

Business

1 answer:

AnnZ [28]3 years ago

8 0

Answer:

1. The slope is negative

2. The demand decreases when the prices increase.

Explanation:

Describe the slope of the demand curve?

The slope of the demand curve is negative.

The demand curve is graphed on a coordinate plane with the price in the horizontal axis (typically the x-axis) and the demand on the vertical axis (y-axis).

Thus, the slope will be the rate of change of the demand over the change on the price.

Mathematically:

$slope=\dfrac{\text{change in demand}}{\text{change in price}}$

Since, as you move from left to right, on the x-axis, the prices increase, and the demand (on the y-axis) lowers, the change in demand is negative and the change in the prices is positive, resulting in a negative slope.

This is seen graphycally because the demand curve is decreasing (downward-sloping).

How does the slope reflect the law of demand?

The slope reflects perfectly the law of demand because the law of demand states that, since the resources are scarce, when the prices incrases the quantities demanded decrease.

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A traditional economy is when goods are sold and bought based on how things have been done for generations.

Neko [114]

The answer is True

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3 years ago

Which of the following are NOT included in the formal financial analysis of a capital budgeting program?

enot [183]

Answer: Option B

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Hence from the above we can conclude that the right option is B.

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3 years ago

BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent

Ludmilka [50]

Answer:

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The current share price for the stock is:

$43.13

Explanation:

Dividend per share = $3.45

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Investors' required rate of return = 13%

Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)

= $3.45/(0.13 - 0.05)

= $43.13

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8 0

3 years ago

If someone runs a red light in front of you and you choose not to slow or steer away you will __

irina [24]

I dont exactly know if this is right, but i would say "crash" if youre being asked to fill in the blank. Thats what I would put. If you continue to drive while someone is in front of you, and you don't take any action to prevent it, you would crash into them. Sorry if this wrong, there wasnt much explanation!

4 0

3 years ago

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400.

nasty-shy [4]

Answer:

$3,340

Explanation:

Step 1 : Determine the Depreciation rate

Depreciation rate = Cost - Salvage Value ÷ Estimated Units

Depreciation rate = $0.10

Step 2 : Depreciation Expense

Depreciation Expense = Depreciation rate x units produced

Depreciation Expense = $3,340

Therefore,

the machine's second-year depreciation using the units-of-production method is $3,340

4 0

3 years ago