Suppose That 50 Hot Dogs Are Demanded at a Particular

question 210

Multiple Choice

Suppose that 50 hot dogs are demanded at a particular price.If the price of hot dogs rises from that price by 5 percent,the number of hot dogs demanded falls to 48.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A)demand for hot dogs in this price range is unit elastic.
• B)price increase will decrease the total revenue of hot dog sellers.
• C)price elasticity of demand for hot dogs in this price range is about 1.22.
• D)price elasticity of demand for hot dogs in this price range is about 0.82.

---

Definitions:

Direct Labor-Hour

A measure of the labor time directly involved in the production of goods, usually quantified in hours.

Overhead Applied

The process of allocating overhead costs to specific jobs or products based on a pre-determined rate or method.

Unit Product Cost

The sum of materials, labor, and overhead expenses required to manufacture a single product unit.

Job K332

A specific task or project identified by the code "K332," usually in the context of job order costing system.