Scenario 4.2: Suppose That the Demand for Artichokes (Qa) Is Given As

question 56

Multiple Choice

Scenario 4.2:
Suppose that the demand for artichokes (Qa) is given as:
Qa = 200 - 4P
-Use the information in Scenario 4.2. Suppose that the price of artichokes is increased slightly from $10. The total expenditure by consumers on artichokes will ________ and the number of artichokes sold will ________.

• A) rise; rise
• B) rise; fall
• C) fall; rise
• D) fall; fall

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically downward sloping.

Competitive Firm

A company that operates in a market where it must compete with other firms for customers.

Marginal Revenue

The additional revenue that a company receives from selling one more unit of a product or service.