When Price Was 10,quantity Demanded Was 50

question 58

Multiple Choice

When price was 10,quantity demanded was 50.When price decreased to 8,quantity demanded increased to 60.Therefore,when price decreased,total revenue

• A) decreased from 500 to 480, indicating that demand is inelastic.
• B) decreased from 500 to 480, indicating that demand is elastic.
• C) increased from 480 to 500, indicating that demand is inelastic.
• D) increased from 480 to 500, indicating that demand is elastic.

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Definitions:

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, giving insight into the impact of potential income increases on one's tax burden.

Cash Operating Costs

Expenditures directly related to the day-to-day business operations, excluding non-cash costs.

Depreciated

Refers to a reduction in the value of an asset over time, typically due to wear and tear or obsolescence.

Marginal Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income or the next dollar of taxable income earned.