Which of the following describes a situation in which demand must be elastic?
a. Total revenue increases by 15 percent when the price of corn dogs rises by 15 percent
b. Total revenue increases by less than 15 percent when the price of corn dogs rises by 15 percent.
c. Total revenue decreases by more than 15 percent when the price of corn dogs rises by 15 percent.
d. Total revenue increases by $15 when the price of corn dogs rises by $15.
e. Total revenue increases by more than $15 when the price of corn dogs rises by $15.
C
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The net-export effect of contractionary monetary policy is
A) the appreciation of the value of the dollar and a resulting decrease of U.S. net exports. B) the depreciation of the value of the dollar and a resulting increase of U.S. net exports. C) the appreciation of the value of the dollar and a resulting increase of U.S. net exports. D) the depreciation of the value of the dollar and a resulting decrease of U.S. net exports.
Everything else equal, if the dollar depreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will import more from the U.S. and will export less to the U.S. C) China will export more to the U.S. and will import less from the U.S. D) the Chinese government will buy yuan from the foreign exchange market.