If the Demand for Donuts Is Elastic,then a Decrease in the Price

question 83

Multiple Choice

If the demand for donuts is elastic,then a decrease in the price of donuts will

• A)increase total revenue of donut sellers.
• B)decrease total revenue of donut sellers.
• C)not change total revenue of donut sellers.
• D)There is not enough information to answer this question.

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Definitions:

Wheat

A cereal grain grown worldwide and a staple food for a large part of the world's human population, used to make products like bread, pasta, and couscous.

Milk

A nutrient-rich fluid produced by the mammary glands of mammals, commonly consumed by humans and used in a variety of food products.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any individual or preference criterion better off without making at least one individual or preference criterion worse off.

Utility Functions

These are equations that quantify the happiness or satisfaction a consumer receives from consuming various goods and services.