Question

When price of a commodity falls from ₹ 10 to ₹ 6 per unit, then the quantity demanded increases from 4 units to 6 units. In such a case, slope of demand curve will be _____.

Options

• −0.5

• 2

• −2

• 0.5

Answer 1

When price of a commodity falls from ₹ 10 to ₹ 6 per unit, then the quantity demanded increases from 4 units to 6 units. In such a case, slope of demand curve will be −2.

Explanation:

The slope of the demand curve is the change in price divided by the change in quantity demanded: \[ \text{Slope}=\frac{\Delta P}{\Delta Q}=\frac{6-10}{6-4}=\frac{-4}{2}=-2 \] The negative value reflects the inverse relationship between price and quantity demanded.