Which of the Following Describes a Situation in Which Demand

question 129

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

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Definitions:

Satellite Television

A broadcasting service that delivers television programming via satellite signals received by an outdoor antenna connected to a satellite receiver.

Insurance Policy

A contract between an insurer and a policyholder, specifying the terms under which the insurer agrees to compensate the policyholder for specified losses or damages.

Door-to-Door

Door-to-door refers to a direct selling method where salespeople visit potential customers in their homes or offices to sell products or services.

Service Salesperson

A professional who specializes in selling intangible products, such as service contracts or subscriptions.