Which of the following describes a situation in which demand must be elastic?
A. Total revenue increases by 15 percent when the price of corn dogs rises by 15 percent.
B. Total revenue increases by less than 15 percent when the price of corn dogs rises by 15 percent.
C. Total revenue decreases by more than 15 percent when the price of corn dogs rises by 15 percent.
D. Total revenue increases by $15 when the price of corn dogs rises by $15.
Answer: C
You might also like to view...
An unexpected rise in Capacity Utilization should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
When a good is put onto the global market at a price below the cost to produce it, this is known as
A) the infant-industry argument. B) dumping. C) a quota. D) protection of domestic jobs.
Asymmetric information involves:
a. information overload in the loan market. b. information that is available on the Web. c. use of the Federal Reserve information system. d. an inequality of information in the loan market.
D2 shows a(n) ______.
a. decrease in demand
b. increase in demand
c. decrease in price
d. increase in price