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Author Question: If the price of the good measured along the vertical axis increases without a change in the price of ... (Read 93 times)

RODY.ELKHALIL

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on: Jun 29, 2018
If the price of the good measured along the vertical axis increases without a change in the price of the good measured along the horizontal axis, the consumer's budget constraint:
 
  A) pivots rightward without a change in the intercept on the horizontal axis.
  B) pivots leftward without a change in the intercept on the horizontal axis.
  C) shifts to the right.
  D) shifts to the left.

Question 2

The above figure represents the demand and marginal revenue curves for Sue's Seafood, a seller of fresh fish.
 
  a. Over what range of output is demand elastic?
  b. Over what range of output is demand inelastic?
  c. What price maximizes total revenue?
  d. What is the price elasticity of demand at the revenue maximizing price?


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shoemake

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

a. Demand is elastic from 0 to 20 pounds of fish.
b. Demand is inelastic from 20 to 40 pounds of fish.
c. Total revenue is maximized when the price is 8 a pound.
d. Total revenue is maximized when demand is unit elastic.


RODY.ELKHALIL

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

at

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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