Consider the Market for Bicycles

question 103

Multiple Choice

Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is:

• A) inelastic, and total revenue will increase.
• B) elastic, and total revenue will increase.
• C) inelastic, and total revenue will decrease.
• D) elastic, and total revenue will decrease.

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Definitions:

Hydraulic Hoses

Flexible tubes designed to convey fluids from one location to another, used in various hydraulic systems.

Tang

The projecting part of an object by which it is attached to something else, often found in tools or components to provide a grip or a means of joining.

File

A tool used to remove fine amounts of material from a workpiece, typically made of hardened steel with a series of ridges or teeth.

Impact Socket

A type of socket made from more durable materials designed to withstand the high torque produced by impact wrenches.