a ($4, 5 units), b ($3, 10units), c ($2, 5 units) and d ($1, 20units) are 4 poin

Question

a ($4, 5 units), b ($3, 10units), c ($2, 5 units) and d ($1, 20units) are 4 points on kim's demand curve for a certain product, use the demand curve ( y -axis = price and x-axis = Qd) to answer question 1 which of the following is true?

A.    The product in question is inferior

B.    The demand curve features a single negative slope

C.    The demand curve features multiple positive slopes

D.    The demand curve features a single positive slopes

E.    The demand curve features multiple negative slopes

Explanation / Answer

Here initially when price increased from $1 to $2, quantity demanded has been decreased, that shows negative slope. But when price increased from $2 to $13, quantity demanded has been increased. This shows positive slope. Therefore, it has one positive and one negative slope. This product is an inferior good.

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