Suppose That the Price of a Good Is $10 and Quantity

question 138

Multiple Choice

Suppose that the price of a good is $10 and quantity demanded is 50 units. When price increases to $12, quantity demanded decreases to 40 units. What happened to total revenue and what does this indicate?

• A) Total revenue decreased from $500 to $480, indicating that demand is inelastic.
• B) Total revenue decreased from $500 to $480, indicating that demand is elastic.
• C) Total revenue increased from $480 to $500, indicating that demand is inelastic.
• D) Total revenue increased from $480 to $500, indicating that demand is elastic.

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Definitions:

Laboratory Value

A numerical result obtained from a laboratory test that measures specific markers in blood, urine, or other body fluids, used to assess health or diagnose conditions.

Calcium

A chemical element and a vital mineral in the human body necessary for bone health, muscle function, and nerve signaling.

Sodium

An essential mineral that plays crucial roles in the body, including maintaining normal fluid balance and supporting nerve and muscle function.

Chloride

A negatively charged ion commonly found in salt compounds, essential for maintaining fluid balance and blood pressure.