Suppose That Ina Is Given the Opportunity to Try Out

question 7

Multiple Choice

Suppose that Ina is given the opportunity to try out three different kinds of hot dogs, and suppose that Oliver is given the opportunity to try out twelve different kinds of hot dogs. Research suggests that ____.

• A) Ina is more likely to decide to purchase one of the hot dogs
• B) Oliver is slightly more likely to decide to purchase one of the hot dogs
• C) Oliver is more than twice as likely to decide to purchase one of the hot dogs
• D) Ina and Oliver are about equally likely to decide to purchase one of the hot dogs

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Definitions:

Total Revenue

The comprehensive total of cash inflow a business gathers from its selling or service operations during a set time period.

Variable Costs

Financial obligations that move in correlation with production levels.

Long-Run Equilibrium

A state in an economy or market where, given the long-term flexibility of prices and adjustment of all input factors, supply equals demand and all firms earn normal profits.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.