Suppose That When the Price of Ginger Ale Is $2

question 44

Multiple Choice

Suppose that when the price of ginger ale is $2 per bottle,firms can sell 4 million bottles.When the price of ginger ale is $3 per bottle,firms can sell 2 million bottles.Which of the following statements is true?

• A)The demand for ginger ale is income inelastic,so an increase in the price of ginger ale will increase the total revenue of ginger ale producers.
• B)The demand for ginger ale is income elastic,so an increase in the price of ginger ale will increase the total revenue of ginger ale producers.
• C)The demand for ginger ale is price inelastic,so an increase in the price of ginger ale will increase the total revenue of ginger ale producers.
• D)The demand for ginger ale is price elastic,so an increase in the price of ginger ale will decrease the total revenue of ginger ale producers.

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Definitions:

High-Side Pressures

The pressure measurements found in the high-pressure side of systems such as air conditioning units, crucial for diagnosing system performance.

Low-Side Pressures

Pressures measured in the low-pressure side of a system, particularly in cooling and refrigeration circuits, indicating the system's status and efficiency.

Damaged Compressor

A compressor that has experienced failure or impairment, affecting its ability to pressurize and circulate refrigerant in HVAC systems or other machinery.

Latent Heat

The amount of heat energy required to change a substance from one state to another: a key principle of refrigeration physics. See also latent heat of condensation and latent heat of vaporization.