All categories

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.

You might be interested in

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead ra

mixer [17]

Answer: Option (C) is correct.

Explanation:

Given that,

In Dept. A,

Direct labor cost = $60,000

Manufacturing overhead = $90,000

Direct labor-hours = 6,000

Machine-hours = 2,000

In Dept. B,

Direct labor cost = $40,000

Manufacturing overhead = $45,000

Direct labor-hours = 9,000

Machine-hours = 15,000

Predetermined overhead rates in Dept. A = $\frac{Manufacturing\ Overhead}{Direct\ labor\ cost} \times 100$

= $\frac{90,000}{60,000} \times 100$

= 150%

In dept. B = $\frac{Manufacturing\ Overhead}{Machine\ Hour}$

= $\frac{45,000}{15,000}$

= $3

8 0

3 years ago

Anyone who is at least 18 years old, a citizen of the United States, and a legal resident may vote in an election. To become a s

wlad13 [49]

I think what can be inferred is that each role has a different age scale and different requirements to become said role

4 0

2 years ago

Everdeen Inc. has a 90-day operating cycle. If its average age of inventory is 35 days, how long is its average collection perio

mart [117]

Answer:

8.6 days

Explanation:

The formula for average collection period

= Average received turnover ratio / 365 daya

= 90 × 35 / 365

= 8.6 days

5 0

3 years ago

Give me atleast 2 question about mice industry

kondor19780726 [428]

Answer:

1.How has the growing economy contributed to the growing mice industry?

2.Why does nobody know the size of mice market?

5 0

3 years ago

Read 2 more answers

On July 27, 2018, shareholders of the Walt Disney Company and 21st Century Fox agreed to a $71.3 billion purchase plan that gave

LenaWriter [7]

Answer: expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.

Explanation:

The options include:

purchasing a powerful and well-known brand name that could be transferred to the products of other businesses and thereby used as a lever for driving up the sales and profits of such businesses.

opening up new avenues for reducing costs by diversifying into closely related businesses such as direct-to-consumer streaming of media content.

leveraging existing resources and capabilities by expanding into related industries where these same resource strengths were key success factors and valuable competitive assets.

expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.

expanding into industries whose technologies and products complemented its present media and entertainment businesses.

The least likely among Disney's considerations in completing its acquisition of Fox will be the expansion into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.

4 0

3 years ago

Read 2 more answers