A greater slope means a steeper demand curve and a less-elastic product. Mathematically this looks like P_2-P_1Q_2-Q_1 Note that in order to calculate this slope you need two points that you know are on the demand curve. The aggregate supply curve has a positive slope and the aggregate demand curve has a negative slope.
Write down a set of values for a certain point on the graph from the data provided within the.
Excluding the extreme case of perfectly elastic demand the demand function with the higher price intercept is less elastic at every price. Consider two linear demand functions. The aggregate supply curve has a positive slope and the aggregate demand curve has a negative slope. P Price of the good.