Scenario 12

question 142

Multiple Choice

Scenario 12.1 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 12.1. If Concession Supply increased its price by 10 percent and experienced only a 2 percent 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:

Rationalizations

The process of providing plausible reasons to justify behavior that might otherwise be unacceptable.

Legal Code

A comprehensive system of laws arranged by subject matter in a systematic and codified manner, often used by jurisdictions to organize their legal principles and statutes.

Corrective Action

Measures taken to identify, eliminate, and prevent the recurrence of errors or problems in a process.

Work Group Identities

The collective sense of belonging and identity shared among members within a workgroup based on common goals or tasks.