-A Manufacturer of Ginseng Tea Found That When It Lowered

question 191

Multiple Choice

-A manufacturer of ginseng tea found that when it lowered the price of a can of its product from $8 to $7,total revenue declined and when it raised the price from $8 to $9 and total sales revenue again declined.Given this information,which of the following statements is correct?

• A)The demand for the product is elastic in the $7 to $8 price range.
• B)The demand for the product is inelastic in the $8 to $9 price range.
• C)$8 cannot be an equilibrium price for this product.
• D)The demand for the product is inelastic in the $7 to $8 range.

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Definitions:

Deductive Arguments

A logical process where the conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Valid

A term used in logic to describe an argument where if the premises are true, the conclusion must also be true.

Premises

Buildings and land owned or occupied by a person or company, often referred to in legal and business contexts.

Deductive Argument

A reasoning method where the outcome is derived from the agreement of several assumptions, which are usually considered accurate.