A 100 increase in the price of a restaurant meal results in, Ask an Expert

Economics

A $1.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 5 meals. Which of the following statements is correct?

a. The slope of the demand curve is -1/5; there is insufficient information to determine the price elasticity of demand.

b. The price elasticity of demand is -1/5; there is insufficient information to determine the slope of the demand curve.

c. Both the slope of the demand curve and the price elasticity of demand are equal to -1/5.

d. There is insufficient information to determine either the slope of the demand curve or the price elasticity of demand.

e. The slope of the demand curve is -1/5; the price elasticity of demand is 5.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91272208

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