The Demand for a Cup of Coffee Is ______________ Than

question 107

Multiple Choice

The demand for a cup of coffee is ______________ than is the demand for a dinner at a fancy restaurant because _________________.

• A) more price elastic; a cup of coffee requires a smaller portion of one's income.
• B) less price elastic; a cup of coffee requires a smaller portion of one's income.
• C) less price elastic; a cup of coffee is more of a luxury.
• D) more price elastic; a cup of coffee is more of a luxury.

---

Definitions:

Cost Curves

Graphs that depict the relationship between the cost of producing goods and the quantity produced.

TR

Total Revenue, the total income received by a firm from sales before any expenses are subtracted.

TC

Total cost, which encompasses all the expenses associated with the production of goods or services, including both fixed and variable costs.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.