If the Demand for Swordfish Is Price Elastic and the Price

question 104

Multiple Choice

If the demand for swordfish is price elastic and the price of swordfish increases, then

• A)the quantity of swordfish demanded will increase
• B)the total revenue from swordfish sales will decrease
• C)the total revenue from swordfish sales will increase
• D)the total revenue from swordfish sales will not change
• E)whether total revenue rises or falls depends on how much the price of swordfish increases

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Definitions:

Short Run

An interval in economic studies where a minimum of one production element remains constant and is unalterable.

Variable Costs

Expenses that change in proportion to the activity of a business.

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be altered.

Profit Maximization

The procedure through which a business identifies the pricing and production volume that yields the highest earnings.