A 25 Percent Decrease in the Price of Breakfast Cereal

question 35

Multiple Choice

A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. As a result:

• A) total revenue will decrease.
• B) total revenue will increase.
• C) total revenue will remain constant.
• D) the elasticity of demand will increase.

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Definitions:

Emotional Contagion

The phenomenon where people absorb and reflect the emotions of those around them, often unconsciously.

Enthusiasm

A state of heightened energy and interest towards a particular activity, idea, or goal.

Difficult Objectives

Highly challenging goals that require substantial effort, resources, and strategic planning to accomplish.

Charismatic

Referring to a quality of extraordinary charm and allure that inspires devotion in others.