Refer to the Accompanying Table A) Perfectly Elastic; Not Change
B) Elastic; Raise
C) Elastic;

question 50

Multiple Choice

Refer to the accompanying table. The price elasticity of demand of erasers is when the price is lowered from $1.50 to $1.00. Sellers of erasers will their total revenue from this price change. $$\begin{array} { | l | c | c | } \hline \begin{array} { l } \text { Price of } \\\text { Erasers }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Demanded of } \\\text { Erasers }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Demanded of } \\\text { Pencils }\end{array} \\\hline \$ 0.50 & 10 & 12 \\\hline \$ 1.00 & 8 & 11 \\\hline \$ 1.50 & 7 & 10 \\\hline \$ 2.00 & 6 & 9 \\\hline \$ 2.50 & 5 & 8 \\\hline\end{array}$$

• A) perfectly elastic; not change
• B) elastic; raise
• C) elastic; lower
• D) inelastic; lower
• E) inelastic; raise

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Definitions:

Cash Operating

Cash operating activities involve the cash inflows and outflows directly related to the core business operations, such as revenue from sales and payments to suppliers.

Useful Life

The estimated duration of time a fixed asset is expected to be useful for its intended purpose.

Automating

The process of implementing systems and technology to perform tasks without human intervention, often to improve efficiency and accuracy.

Operating Expenses

Costs incurred in the regular functioning of a business, excluding direct production costs; these may include rent, utilities, and administrative salaries.