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:

Business Partners

Individuals or companies that engage in a continuing relationship to conduct business or collaborate on a project.

Distribution Channel

The pathway through which goods or services flow from the producer to the consumer.

Sorting Centers

Facilities where items, such as mail, packages, or other goods, are sorted according to their destination or other criteria before being sent out for delivery or further processing.

SCM Solution

Stands for Supply Chain Management Solution, which refers to tools or software applications that support and enhance the processes of managing the flow of goods, information, and finances as products move from supplier to manufacturer to wholesaler to retailer to consumer.