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...
The willingness of consumers to buy a product at different prices is shown on a
A) demand curve. B) production possibilities frontier. C) supply curve. D) marginal cost curve.
The increased labor force participation rates for women since the 1970s led most directly to ________
A) an increase in labor demand B) a decrease in labor demand C) a decrease in labor supply D) an increase in labor supply
According to the 1860 census, the top employer in manufacturing was the _______ industry
a. boots and shoes b. cotton textile c. flour and meal d. iron
When a country imposes an import quota, its
a. net exports rise and its real exchange rate appreciates. b. net exports rise and its real exchange rate depreciates. c. net exports fall and its real exchange rate depreciates d. None of the above is correct.