Which of the Following Describes a Situation in Which Demand

question 93

Multiple Choice

Which of the following describes a situation in which demand must be elastic?

• A) Total revenue increases by 15 percent when the price of corn dogs rises by 15 percent.
• B) Total revenue increases by less than 15 percent when the price of corn dogs rises by 15 percent.
• C) Total revenue decreases by more than 15 percent when the price of corn dogs rises by 15 percent.
• D) Total revenue increases by $15 when the price of corn dogs rises by $15.

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Definitions:

Canning Jars

Containers typically made of glass used for preserving food through the process of canning, which involves sterilization and sealing.

Consumer Equilibrium

The point at which the quantity of goods consumed by a consumer maximizes their utility, given their budget constraints.

Marginal Utility Per Dollar

The additional satisfaction or utility gained from spending one more dollar on a good or service.

Consumer Equilibrium

A state where the consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.