Multiple Choice
Which of the following describes a situation in which demand must be elastic?
A) The price of pens rises by 10 cents, and quantity of pens demanded falls by 50.
B) The price of pens rises by 10 cents, and total revenue rises.
C) A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded.
D) Total revenue does not change when the price of pens rises.
E) Total revenue decreases when the price of pencils rises.
Correct Answer:
Verified
Correct Answer:
Verified
Q181: If the supply curve slopes upward and
Q182: Exhibit 5-28 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 5-28
Q183: The more broadly a good is defined,<br>A)the
Q184: For which of the following is demand
Q185: If an increase in price from $1.20
Q187: If the value of the price elasticity
Q188: Demand for a necessity, such as food,
Q189: Demand is elastic whenever<br>A)price elasticity has an
Q190: Demand for clothing tends to be<br>A)elastic because
Q191: Negative cross-price elasticity of demand indicates that<br>A)the