Assume the Price Elasticity of Demand for MC Pretzel Co

question 15

Multiple Choice

Assume the price elasticity of demand for MC Pretzel Co.pretzels is 0.8.If the company increases the price of each bag of pretzels,total revenue will

• A)Decrease because fewer bags will be sold.
• B)Increase because demand is elastic and revenue will rise.
• C)Increase because the percentage increase in price is greater than the percentage change in quantity demanded.
• D)Be impossible to predict because the percentage change in price is not known.

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Definitions:

Grievance Procedure

A formal process for employees to raise complaints or concerns with their employer, usually related to working conditions or treatment.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers.

Right-to-Work Laws

Laws that govern the labor market, specifically prohibiting union security agreements, or agreements between employers and labor unions, that govern the extent to which an established union can require employees' membership, payment of union dues, or fees as a condition of employment, either before or after hiring.