« previous next »

Author Question: The marketing people at Ben and Jerry's Ice Cream Company believe that if they lower the price of ... (Read 109 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
on: Jun 29, 2018
The marketing people at Ben and Jerry's Ice Cream Company believe that if they lower the price of their Cherry Garcia flavor ice cream by 25 percent, the quantity demanded will increase by 5 percent. If they are correct in their belief, then
 
  A) the demand for Cherry Garcia is price elastic.
  B) their total revenue from Cherry Garcia will increase if they lower the price.
  C) the demand for Cherry Garcia is income elastic.
  D) their total revenue from Cherry Garcia will decrease if they lower the price.

Question 2

In perfect competition
 
  A) many firms sell slightly different products to many buyers.
  B) sellers are better informed about the prices than buyers.
  C) firms face no restrictions on entry into market.
  D) established firms have advantage over new ones.


vickybb89

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Earth Affects People; People Change Earth Earth Affects People; People Change Earth
Children’s interactions with older siblings may help promote an understanding of other people’s ... Children’s interactions with older siblings may help promote an understanding of other people’s ...
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Bones of the upper and lower extremities. Bones of the upper and lower extremities.
The upper intake manifold, often called a plenum, attaches to the lower intake manifold. The upper intake manifold, often called a plenum, attaches to the lower intake manifold.
Societal pressure to be thin can cause people to feel fat Societal pressure to be thin can cause people to feel fat
Video: Role of transport in a cell

For a complete list of videos, visit our video library