Demand Schedule for Ski Tickets
TABLE 4-2
-Refer to Table 4-2. Using the data provided to plot the demand curve for ski tickets results in a
Demand curve. Price elasticity along this demand curve is therefore as price is falling.
A) horizontal; constant at a value of 8
B) vertical; constant at a value of 0
C) rectangular hyperbola; constant at a value of 1
D) downward sloping and linear; continuously increasing
E) downward sloping and linear; continuously decreasing

Question

Demand Schedule for Ski Tickets
  TABLE 4-2
-Refer to Table 4-2. Using the data provided to plot the demand curve for ski tickets results in a
Demand curve. Price elasticity along this demand curve is therefore as price is falling.
A) horizontal; constant at a value of 8 
B) vertical; constant at a value of 0 
C) rectangular hyperbola; constant at a value of 1 
D) downward sloping and linear; continuously increasing 
E) downward sloping and linear; continuously decreasing

Quizplus · Accepted Answer

The demand curve for ski tickets based on the data provided is downward sloping and linear, which means as the price of ski tickets decreases, the quantity demanded increases at a constant rate. This indicates a price elasticity of demand that is continuously decreasing along the demand curve. Therefore, the best choice is E.