Scenario 12.1 Use the Following to Answer the Questions

question 147

Multiple Choice

Scenario 12.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 12.1. If Concession Supply increased its price by 10 percent and experienced only a 2 percent decrease in the demand for hotdogs, the demand would be:

• A) inelastic.
• B) constant
• C) prestige.
• D) elastic.
• E) marginal.

---

Definitions:

Benefit Formula

A method used to calculate the amount of benefits, such as pensions, insurance payouts, or social security, based on factors like income, years of service, or contributions.

Tax Rates

The percentages at which income or value is taxed by governmental authorities, varying by income level, product type, or activity being taxed.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor and materials.

Future Taxpayers

Individuals or entities that will be responsible for contributing to government revenues through taxes in the future.