When Price Was 10,quantity Demanded Was 50

question 128

Multiple Choice

When price was 10,quantity demanded was 50.When price increased to 12,quantity demanded decreased to 40.Therefore,when price increased,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:

Break-even Point

The point at which total costs and total income are equal, so there is no loss or gain, and the business is just covering all its costs with its sales revenue.