When the Price of Sugar Was "Low," U

question 122

Multiple Choice

When the price of sugar was "low," U.S.consumers spent a total of $3 billion annually on sugar consumption.When the price doubled,consumer expenditures remained at $3 billion annually.This data indicates that:

• A) the demand for sugar is inelastic.
• B) the demand curve for sugar is upward sloping.
• C) the quantity demanded of sugar increased.
• D) None of the preceding statements is correct.

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Definitions:

Premium

A premium refers to the additional amount paid for a product, service, or insurance policy over and above its basic cost.

Risk Reduction

Strategies or actions taken to decrease or mitigate the level of risk.

Expected Value

A statistical measure that calculates the average outcome of a random variable or process, factoring in all possible values and their probabilities.

Efficient Allocation

The distribution of resources in such a manner that it's impossible to improve anyone's condition without worsening someone else's.