The slope of price line throughout its length?a)Remains the sameb)Is equal on the other side of the mid pointsc)Differs from point to pointd)None of aboveCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Its remain same

Answer

A) Remains the same.
This is because in perfect competition , price line is a straight line. And the ratio (∆TR/∆Q )That is change in total revenue and change in output is constant.{MR=AR}So slope of a straight line is always constant.

Answer

Price line is also know as budget line and budget line increases constantly hence the correct and is -A

Answer

Slope of a line refers to the measure of how steep or flat the line is. In the context of a price line, it represents the rate at which the price changes with respect to a given variable, such as quantity.

The correct answer to the question is option 'A' - the slope of the price line remains the same throughout its length. This means that the rate at which the price changes remains constant regardless of the quantity or any other variable.

Here's a detailed explanation of why the slope of the price line remains the same:

1. Definition of slope:
- Slope is defined as the change in the y-coordinate divided by the change in the x-coordinate of two points on a line.
- In the case of a price line, the y-coordinate represents the price and the x-coordinate represents the quantity.

2. Law of demand:
- The slope of the price line is determined by the law of demand, which states that as the price increases, the quantity demanded decreases, and vice versa.
- This negative relationship between price and quantity demanded is reflected in the downward slope of the price line.

3. Constant slope:
- The law of demand implies that the rate at which the price changes is constant.
- As the quantity increases (moving to the right along the x-axis), the price decreases (moving downward along the y-axis) at a consistent rate.
- Similarly, as the quantity decreases, the price increases at the same consistent rate.

4. Linear relationship:
- The price line is typically represented as a straight line on a graph, indicating a linear relationship between price and quantity.
- A linear relationship means that the change in the y-coordinate (price) is proportional to the change in the x-coordinate (quantity) throughout the line.

5. No change in slope:
- Since the price line represents a linear relationship, the slope remains the same at all points along the line.
- This means that the rate at which the price changes remains constant, regardless of the quantity.

In conclusion, the slope of the price line remains the same throughout its length because of the consistent and linear relationship between price and quantity demanded.

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

Top Courses for Commerce

Suggested Free Tests

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company