When Price = $16, Quantity Demanded = 200

question 17

Multiple Choice

When price = $16, quantity demanded = 200. When price = $14, quantity demanded = 225. When the firm lowered price from $16 to $14, it discovered that demand is __________ and total revenue __________ by ____________,

• A)elastic; increased; $3,200
• B)elastic; decreased; $3,150
• C)inelastic; increased; $50
• D)inelastic; decreased; $50
• E)inelastic; decreased; $3,150

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Definitions:

Diffusion of Innovation

The process through which a new idea, product, or practice spreads within a population.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Patent

A legal document granting an inventor exclusive rights to produce, use, and sell an invention for a certain period of time.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the number of units produced, representing the cost per unit.