Exhibit 5-7 -Between Points B and C in Exhibit 5-7, Price Decreases

question 228

Multiple Choice

Exhibit 5-7
-Between points b and c in Exhibit 5-7, price decreases by $1, quantity demanded increases by 10,

• A) total revenue decreases by $1, and demand is elastic
• B) total revenue decreases by $1, and demand is inelastic
• C) total revenue increases by $40, and demand is elastic
• D) total revenue increases by $40, and demand is inelastic
• E) and total revenue increases by $80

Recognize the significance of space and proxemics in human interactions.

Appreciate the psychological and emotional aspects influencing communication.

Identify different cultural contexts of communication and how they affect interpersonal relations.

Understand the dynamics of listening and the factors that affect it.

---

Definitions:

Market Economy

An economic system where supply and demand from consumers drive the production of goods and services.

Income Distribution

How a nation’s total GDP is spread amongst its population, impacting the economic welfare of its citizens.

Relative Scarcity

Relative scarcity refers to the situation where a resource is limited in supply when compared to the demand for it.

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which increases as income rises within progressive tax systems.