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:

Industrial Workers

Individuals engaged in work that involves the manufacturing and production of goods in industrial settings, such as factories.

American Labor Force

The collective group of employed individuals or those actively seeking employment in the United States.

1920

A significant year marked by various historical events, including the ratification of the 19th Amendment to the U.S. Constitution, granting women the right to vote.

Withholding Their Labor

A form of protest or collective bargaining where workers refuse to work to gain leverage over their employer, typically for better wages or working conditions.