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:

Maturity Date

The date on which the final payment for a loan, bond, or other financial instrument is due to be paid.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on deposited funds, influencing the cost of loans and savings.

Initial Amount

The starting sum or value in financial transactions or calculations.

Stock Ownerships

The holding of shares in a company, which represents a claim on the company's assets and earnings.