Answer:
Percent Decrease = 20% Decrease
Step-by-step explanation:
To find percentage decrease, we will use a simple formula shown below:
Percentage Decrease/Increase =
Where
New is the latest number of members (which is 24)
Old is the initial number of members (which is 30)
<em>Note: the multiplication by a factor of "100" brings the answer to a percentage</em>.
Now, lets substitute the numbers and figure out the percentage decrease:
So, it comes to -20, which is a decrease of 20%
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.
