Table 7-9 -Refer to Table 7-9

question 316

Multiple Choice

Table 7-9
$\begin{array}{|c|c|}\hline\begin{array}{c}\text { Price per Pound } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Quantity of Cheese } \\\text { Demanded (pounds) }\end{array} \\\hline \$ 16 & 3 \\\hline 14 & 4 \\\hline 12 & 5 \\\hline 10 & 6 \\\hline 8 & 7 \\\hline 6 & 8 \\\hline 4 & 9 \\\hline 2 & 10 \\\hline\end{array}$
-Refer to Table 7-9.Over what range of prices is the demand inelastic?

• A) over the entire range of prices
• B) between $12 and $16
• C) between $8 and $16
• D) between $2 and $8

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Definitions:

ATC

Average Total Cost; the total cost of production divided by the total output produced.

Economic Profits

The remaining amount after deducting total expenses from the total income, taking into account all direct and indirect costs.

Profit Maximizes

A strategy or objective of businesses to achieve the highest possible profit, where total revenue exceeds total costs by the largest margin.

MR

Short for Marginal Revenue, it represents the additional income earned from selling one more unit of a good or service.