Figure 5-11 -Refer to Figure 5-11.If Price Increases from $10 to $20,total

question 216

Multiple Choice

Figure 5-11
-Refer to Figure 5-11.If price increases from $10 to $20,total revenue will

• A)increase by $120,so demand must be inelastic in this price range.
• B)increase by $320,so demand must be inelastic in this price range.
• C)decrease by $120,so demand must be elastic in this price range.
• D)decrease by $320,so demand must be elastic in this price range.

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Market Economy

An economic system where supply and demand from consumers and businesses drive the production and allocation of resources and services, with minimal government intervention.

Market Failure

A circumstance where goods and services are distributed ineffectively by a market operating without restrictions, commonly leading to a decline in social welfare.

Allocate Resources

The process of distributing available resources among various competing needs and wants in order to achieve desired outcomes efficiently and effectively.