Suppose That When the Price of Beer Is $2 Per

question 372

Multiple Choice

Suppose that when the price of beer is $2 per bottle,firms can sell 4 million bottles.When the price of beer is $3 per bottle,firms can sell 2 million bottles.Which of the following statements is true?

• A) The demand for beer is income inelastic,and so an increase in the price of beer will increase the total revenue of beer producers.
• B) The demand for beer is income elastic,and so an increase in the price of beer will increase the total revenue of beer producers.
• C) The demand for beer is price inelastic,and so an increase in the price of beer will increase the total revenue of beer producers.
• D) The demand for beer is price elastic,and so an increase in the price of beer will increase the total revenue of beer producers.

---

Definitions:

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; implies a desire to do a task well.

Big Five Trait

Refers to five broad domains or dimensions of personality that are used to describe human personality. These are openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Temperament

The inherent part of an individual's personality, including aspects such as mood, behavior tendencies, and emotional reactivity.

Behavioral Style

The characteristic way in which an individual acts or behaves in different situations.