Suppose That Chris Had Been Charging $1

question 98

Multiple Choice

Suppose that Chris had been charging $1.00 per pound for potatoes.When Chris lowered the price to $0.90 per pound,total revenue fell.When Chris raised the price to $1.10,total revenue also fell.Why?

• A)$1.00 is the equilibrium price for potatoes.
• B)At 90 cents,there is excess demand for potatoes.
• C)$1.10 is more than Chris's customers' reservation prices.
• D)Price elasticity of demand is unitary at $1.00.

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Definitions:

Natural Selection

A process in evolutionary biology where organisms better adapted to their environment tend to survive and produce more offspring.

Authoritarian

Authoritarian describes a style of leadership or governance characterized by strong central power and limited political freedoms, or in the context of parenting, a style marked by strict rules and expectations with little room for dialogue.

Strict Guidelines

Strict guidelines refer to a set of precise and clear rules or principles designed to control or govern behavior or procedures.

Rejecting-neglectful

A parenting style characterized by a lack of responsiveness to a child's needs and a lack of demands, often resulting in negative outcomes for the child's development.