Suppose You Are in Charge of Setting Prices at a Local

question 209

Multiple Choice

Suppose you are in charge of setting prices at a local sandwich shop.The business needs to increase its total revenue,and your job is on the line.If the demand for sandwiches is elastic,you

• A) should increase the price of sandwiches.
• B) should decrease the price of sandwiches.
• C) should not change the price of sandwiches.
• D) could not determine what to do with price until you determine whether supply is elastic or inelastic.

---

Definitions:

Equilibrium Level Of Saving

The point at which the amount households save equals the amount they invest, resulting in a balance within the economy's financial resources.

U.S. Government Debt

The total amount of money that the United States federal government owes to creditors, including both public debt and intra-governmental obligations.

Budget Deficit

An economic situation where a government's expenditures exceed its revenue over a specified period of time, leading to borrowing or money printing.

Deficit Financing

The practice of funding government spending by borrowing rather than from taxation, leading to a budget deficit.