If the Demand for Donuts Is Elastic,then an Increase in the Price

question 220

Multiple Choice

If the demand for donuts is elastic,then an increase 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:

Prescription

A written direction for the preparation of a medicine.

Suppository

A solid medical preparation designed to be inserted into the rectum, vagina, or urethra, where it dissolves or melts to exert a local or systemic effect.

Narcotic

Substances that reduce pain, alter mood or behavior, and can cause sleep or stupor, often used medically for pain relief but can lead to addiction.

Ointment

A semisolid preparation usually containing medicinal substances, applied topically for therapeutic reasons.