If the Demand for Insulin Is Inelastic,an Increase in Insulin

question 242

Multiple Choice

If the demand for insulin is inelastic,an increase in insulin prices leads to

• A) less total revenue for insulin makers.
• B) more total revenue for insulin makers.
• C) no change in total revenue for insulin makers.
• D) first a decrease, then an increase in total revenue for insulin makers.
• E) Total revenue probably changes, but we need more information about the change in total expenditures on insulin to determine if the total revenue rises, falls, or stays the same.

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Definitions:

Mode of Shipment

The method or form of transporting goods from one place to another, including by sea, air, rail, or road.

Holding Cost

The expenses associated with storing inventory that is not being sold or used in the immediate future, including warehousing, insurance, and opportunity costs.

Shipping Option

Various methods and services provided by carriers for transporting goods from one location to another, differing in speed, cost, and handling requirements.

Factor Weighting Technique

A multi-criteria decision-making method that involves assigning different weights to various factors or attributes to rank or evaluate options.