You are reading the quarterly financial report of one of your competitors. You expected to see their total sales revenue decline because they had a large price increase during the quarter. You were certain that the price increase would lead to an equivalently large decrease in their total sales revenue. To your surprise, their total sales revenue actually increased in the quarter.
Based on this information, which of the following explanations could explain why the competitor's total sales revenue increased?
A) The demand for the company's products is inelastic, so total revenue declines when prices are raised.
B) The demand for the company's products is elastic, so total revenue declines when prices are raised.
C) The demand for the company's products is elastic, so unit sales increase when prices are raised.
D) The demand for the company's products is inelastic, so total sales revenue increases when prices are raised.
E) The demand for the company's products is elastic, so fixed costs increase when prices are raised.
Question 2
Desirable product images can be created through the use of colors, design, shapes, and textures in packaging.
Indicate whether the statement is true or false
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
Berthe Morisot, Reading.
For centuries, widows in the Mediterranean countries, such as thise widow in Greece, were expected ...
If the gauge reading is now much higher than the first test results, then the cause of the low ...
The expected value for a binomial probability distribution is _____.
Bateson and Punnett’s Observed and Expected Phenotypes in F2 Sweet Peas