Calculate the slope of the demand curve at point A and at point B in the following figure.

Solutions

Expert Solution

(a)

The relationship between the price of turkeys and the quantity of turkeys sold by Godfrey’s Free-Range Gobblers is a positive relationship because as the price increases, the quantity sold increases.

(b)

The slope of the line is equal to 0.4.

(c)

At point A, the tangent line runs through the points (p = 34, q = 20) and (p = 24, q = 45). The slope is therefore (34 – 24) / (20 – 45) = 10 / –25 = –0.4.

At point B, the tangent line runs through the points (p = 12, q = 90) and (p = 5, q = 140). The slope is therefore (12 – 5) / (90 – 140) = 7 / –50 = –0.14.

Junaid answered 6 months ago

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