Suppose the Price Elasticity of Demand for Eggs Is −0

question 142

Multiple Choice

Suppose the price elasticity of demand for eggs is −0.27. Therefore, an increase in the price of eggs will cause:

• A) a decrease in egg suppliers' total revenue.
• B) an increase in the demand for eggs.
• C) an increase in egg suppliers' total revenue.
• D) an increase in the quantity demand of eggs.

---

Definitions:

Magazine Subscriptions

Recurring payments made by the readers to receive periodic publications over a specific period of time.

Supplies Expense

The cost associated with the consumption of supplies used in the operation of a business.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Inventory Supplies

Items or materials kept on hand by a business for the production process or for sale.