Exhibit 4-C -Refer to Exhibit 4-C.Graph a Represents a Demand Curve That

question 188

Multiple Choice

Exhibit 4-C
-Refer to Exhibit 4-C.Graph A represents a demand curve that is relatively ____.Total revenue ____ as the price decreases from $10 to $5.

• A)inelastic; decreases
• B)elastic; decreases
• C)elastic; increases
• D)inelastic; increases

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Definitions:

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.