The Demand for Hamburger Buns Is Known to Be Elastic

question 191

Multiple Choice

The demand for hamburger buns is known to be elastic.This means that if the price of the product increases,

• A)total revenue will rise.
• B)total revenue will stay the same.
• C)the quantity demanded will rise.
• D)total revenue will fall.

---

Definitions:

Total Costs

Total costs encompass the sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Average Total Costs

The total cost of production divided by the number of units produced, representing the per-unit production cost.

Marginal Costs

The charge for generating one more unit of a product or service.

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.