Suppose That 50 Hot Dogs Are Demanded at a Particular

question 210

Multiple Choice

Suppose that 50 hot dogs are demanded at a particular price.If the price of hot dogs rises from that price by 5 percent,the number of hot dogs demanded falls to 48.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A)demand for hot dogs in this price range is unit elastic.
• B)price increase will decrease the total revenue of hot dog sellers.
• C)price elasticity of demand for hot dogs in this price range is about 1.22.
• D)price elasticity of demand for hot dogs in this price range is about 0.82.

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Definitions:

Direct Labour

The workforce directly involved in the manufacturing of products or the delivery of services, whose costs are directly attributable to the production process.

Direct Material

Raw materials that are directly incorporated into a finished product.

Direct Labour

Labor costs directly associated with the manufacturing of a product or provision of a service, often considered a variable cost.

Work in Process

Inventory that includes goods in the midst of the production process, between raw materials and finished goods stages.