When Price Rises by 3 Percent and Quantity Demanded Changes

question 79

Multiple Choice

When price rises by 3 percent and quantity demanded changes by 6 percent,

• A)total revenue falls 3 percent.
• B)total revenue falls by half.
• C)total revenue doubles.
• D)total revenue does not change.
• E)total revenue increases 18 percent.

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Definitions:

Amtrak Train Service

A government-owned corporation that provides intercity passenger train service in the United States.

Other Passengers

Individuals sharing a transport service such as a bus, plane, or carpool, not including the service provider or driver.

Elastic Demand

Describes a market situation in which the quantity demanded of a good or service significantly changes in response to a change in price.

Ticket Price

Ticket Price is the cost paid to obtain admission to an event, such as a concert, movie, or sporting event.