Figure 7-12 -Refer to Figure 7-12. When Price Falls from $50 to from $50

question 159

Multiple Choice

Figure 7-12
-Refer to Figure 7-12. When price falls from $50 to $40, it can be inferred that demand between those two prices is

• A) inelastic, since total revenue decreases from $8,000 to $5,000.
• B) inelastic, since total revenue increases from $5,000 to $8,000.
• C) elastic, since total revenue increases from $5,000 to $8,000.
• D) unit elastic, since total revenue increases from $5,000 to $8,000.

---

Definitions:

Positive Economics

A branch of economics that seeks to describe and explain the behavior of the economy or economic phenomena without making judgments on whether the outcomes are good or bad.

Income Distribution

The way in which total income is shared among the population or different groups within the society.

In-kind Benefits

Non-cash assistance provided by governments or organizations, such as food, housing, or medical services, aimed at improving welfare.

Normative Concept

An idea or standard that prescribes how things should be or what people ought to do, often based on values or ethical considerations.