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10 Supply and Demand Practice Questions

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10 Supply and Demand Practice Questions - Question 6
Question 6: Find the slope of an assumed linear demand curve for theater tickets, when persons purchase 1,000 at $5.00 per ticket and 200 at $15.00 per ticket.

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Answer: The slope of a linear demand curve is simply:

Change in Price / Change in Quantity

So when the price changes from $5.00 to $15.00, the quantity changes from 1,000 to 200. This gives us:

15 - 5 / 200 - 1000

10 / -800

-1/80

Thus the slope of the demand curve is given by -1/80.

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