If Pete Raises His Price of Muffins from $2 to $3

question 121

Multiple Choice

If Pete raises his price of muffins from $2 to $3 and his total revenue increases from $35,000 to $38,000, then:

• A) the demand for Pete's muffins in this range is elastic.
• B) the demand for Pete's muffins in this range is inelastic.
• C) the demand for Pete's muffins in this range is unit elastic.
• D) the percentage change in quantity demanded must exceed the percentage change in product price.

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Definitions:

Adventitious

Referring to structures that develop in an unusual place, such as roots growing from stems or leaves instead of from the plant's root system.

Taproots

A type of root system characterized by a single, large, central root that grows vertically downward and gives off smaller lateral roots.

Mycorrhizal

Referring to the symbiotic association between a fungus and the roots of a vascular plant, enhancing nutrient and water uptake.

Fibrous

Consisting of or characterized by fibers, often referring to tissue, plants, or materials with a thread-like structure.