-A Manufacturer of Ginseng Tea Found That When It Lowered

question 191

Multiple Choice

-A manufacturer of ginseng tea found that when it lowered the price of a can of its product from $8 to $7,total revenue declined and when it raised the price from $8 to $9 and total sales revenue again declined.Given this information,which of the following statements is correct?

• A)The demand for the product is elastic in the $7 to $8 price range.
• B)The demand for the product is inelastic in the $8 to $9 price range.
• C)$8 cannot be an equilibrium price for this product.
• D)The demand for the product is inelastic in the $7 to $8 range.

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Definitions:

Cerebrospinal Fluid

The clear, colorless body fluid found in the brain and spinal cord, protecting and nourishing them.

Myelin Sheath

A fatty layer that surrounds the axons of some neurons, providing insulation and increasing the speed of electrical transmission along the nerve.

CNS

Central Nervous System, comprising the brain and spinal cord, responsible for processing information and controlling body functions.

Glial Cell

Non-neuronal cells in the nervous system that provide support, nutrition, and insulation between neurons.