Scenario 19

question 110

Multiple Choice

Scenario 19.1 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 19.1. If Concession Supply increased its price by 10% and experienced only a 2% decrease in the demand for hotdogs, the demand would be

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

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Definitions:

Audience Benefit

The advantage or positive outcome that the audience gains from engaging with a presentation, product, or service.

Compelling Arguments

Persuasive and strong reasons or evidence presented to convince others of a particular stance, viewpoint, or decision.

Practical Information

Useful and actionable details or data that can be applied in real-life situations.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.