When Price Was 6,quantity Demanded Was 10

question 103

Multiple Choice

When price was 6,quantity demanded was 10.When price decreased to 5,quantity demanded increased to 13.Therefore,when price decreased,total revenue

• A) decreased from 65 to 60, indicating that demand is inelastic.
• B) decreased from 65 to 60, indicating that demand is elastic.
• C) increased from 60 to 65, indicating that demand is inelastic.
• D) increased from 60 to 65, indicating that demand is elastic.

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Supply Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to offer for sale.

Price Floors

A government- or authority-imposed minimum price that sellers must charge for a good or service, essentially preventing prices from falling below this set level.

Ceiling Prices

Maximum prices set by the government on certain goods and services to prevent excessive pricing during shortages or inflationary periods.