Question

The slope of demand curve is equal to ______.

Options

• \[ \frac{\text{Change in Quantity }(\Delta Q)}{\text{Change in Price }(\Delta P)} \]

• \[ \frac{\text{Change in Price }(\Delta P)}{\text{Change in Quantity }(\Delta Q)} \]

• \[ \frac{\text{Change in Price }(\Delta P)}{\text{Change in Quantity }(\Delta Q)} \]

• \[ \frac{\text{Price }(P)}{\text{Quantity }(Q)} \]

Answer 1

The slope of demand curve is equal to \[ \frac{\text{Change in Price }(\Delta P)}{\text{Change in Quantity }(\Delta Q)} \].

Explanation:

The slope is the change in the variable on the vertical axis divided by the change in the variable on the horizontal axis. For a demand curve, price is on the vertical axis and quantity demanded is on the horizontal axis, so option (b) is correct.