Which of the Following Explains Why a Firm Would Be

question 38

Multiple Choice

Which of the following explains why a firm would be interested in knowing the price elasticity of demand for a good it sells?

• A)The price elasticity of demand can be used to determine the impact of changes in income on quantity sold.
• B)Knowing the price elasticity of demand allows the firm to determine how the cost of producing additional units of the good will change.
• C)Knowing the price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total profit.
• D)The price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total revenue.

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Definitions:

Disaccharide

Condensation product of two monosaccharides by the elimination of water.

Sucrose

A type of sugar, made of glucose and fructose, often referred to as table sugar.

Glucose

A basic glucose molecule serving as a vital energy source in life and a component in many types of carbohydrates.

Glycogen

An energy-storing polysaccharide made of glucose, found in animals and fungi, with a branched structure.