![]() ![]() For example, the slope between two points A and D is -0.44 but the slope between the points that lie in between these two points is large, B and C is -0.66. Lacks reliability because difference in the slope of a demand curve can produce a larger change in the independent variable. This method of slope determination has certain limitations, which are as follows:Ī. Therefore, the slope at point C of demand curve is equal to -4.5/10. The slope at point C of demand curve can be determined as follows: Similarly, we can draw a tangent from point C and calculate the slope of tangent or slope at point C of demand curve. The slope of tangent or slope at point B is equal to: The slope of tangent and demand curve is equal in measurement. For example, the slope at point B and D on demand curve can be calculated by drawing a tangent from point B. In a nonlinear demand curve, the slope is different not only in between the points but also at every point. This implies that the slope of nonlinear demand function would be different between two different sets of points. The slope between the two sets A and B and C and D are different. ![]() The slope between C and D point is equal to: ![]() The slope between A and B point is equal to: The demand curve for non-linear demand function is represented in Figure-3:įrom Figure-3, let us determine the slope between A and B and C and D. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |