Which of the Following Describes a Situation in Which Demand

question 220

Multiple Choice

Which of the following describes a situation in which demand must be elastic?

• A) The price of dish soap rises by 10 cents, and quantity of dish soap demanded falls by 50.
• B) The price of dish soap rises by 10 cents, and total revenue rises.
• C) A 20 percent increase in the price of dish soap leads to a 20 percent decrease in the quantity of dish soap demanded.
• D) Total revenue does not change when the price of dish soap rises.
• E) Total revenue decreases when the price of dish soap rises.

Recognize the roles and characteristics of different types of play according to developmental psychologists.

Analyze the influence of birth order and sibling dynamics on personality and social skills.

Comprehend the process of forming early friendships and their impact on children's social development.

Identify the cognitive and social benefits of cooperative and dramatic play.

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Definitions:

Constant Costs

Costs that do not change with the level of output or activity within a certain range.

Short-run Supply Curve

A graphical representation showing the relation between the price of a product and the quantity of the product that a firm is willing and able to sell, given fixed resources.

MC Curve

A graph that shows the relationship between the marginal cost and the quantity of output produced, typically upward sloping.

Shut-down Price

The price level at which a firm ceases its operations because the revenue received does not cover the variable costs, making it financially unsustainable to continue.