Suppose the Demand for Peaches Sold from One Roadside Stand

question 246

Multiple Choice

Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic.As a result,a 7 percent increase in the price charged by the owner of this stand leads to

• A) zero peaches sold by this stand.
• B) no change in the quantity demanded at this stand.
• C) a 7 percent decrease in the quantity demanded at this stand.
• D) a 7 percent decrease in demand at this stand.
• E) a virtually infinite increase in the quantity demanded at this stand.

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Definitions:

Total Assets

The sum of all current and non-current assets owned by a business, indicating its total resources.

Cost Per Unit

The total expense incurred in manufacturing or acquiring a product divided by the number of units.

Purchased

Acquired in exchange for money or its equivalent; obtaining ownership of a good or service.

Days' Sales

A financial ratio that measures the average time it takes a company to convert its inventory into sales.