If the Owner of an Ice Cream Van Charges $2

question 89

Multiple Choice

If the owner of an ice cream van charges $2.00 for an ice cream cone, her total revenue is $800.00 a day. If she lowers the price to $1.75 her total revenue is $750.00 a day. The demand for ice cream is:

• A) unit elastic
• B) elastic
• C) neither elastic nor inelastic because this situation violates the law of demand
• D) inelastic

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Definitions:

Limestone

A sedimentary rock composed mainly of calcium carbonate, typically formed from the skeletal fragments of marine organisms.

Shales

Fine-grained sedimentary rocks that can split into thin, parallel layers, composed mainly of clay minerals.

Siltstones

Fine-grained sedimentary rocks that consist predominantly of silt particles, smaller than sand grains but larger than clay, often formed in quiet water environments.

Lime Muds

Fine-grained sediments composed largely of calcium carbonate, typically formed in marine environments where organisms such as coral or foraminifera are prevalent.