Suppose the Current Level of Output of Some Good Is

question 14

Multiple Choice

Suppose the current level of output of some good is 100 units.If market demand is inelastic at that quantity,total expenditure on this product would be higher if output was

• A)maximized.
• B)kept constant.
• C)greater than 100 units.
• D)less than 100 units.
• E)minimized.

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Definitions:

Cheat

To act dishonestly or unfairly in order to gain an advantage, especially in a game, exam, or competition.

Agreements

Arrangements or contracts between parties defining their rights, responsibilities, and relationships.

Kinked-Demand

A demand curve hypothesis in oligopolistic markets that explains why firms may not change their prices even when costs change, due to competitive reactions.