This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If Pete raises his price of muffins from 2 to 3 and his sales revenue increases from 35,000 to ... (Read 34 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
on: Jun 30, 2018
If Pete raises his price of muffins from 2 to 3 and his sales revenue increases from 35,000 to 38,000 . then:
 a. the demand for Pete's muffins in this range is price elastic.
  b. the demand for Pete's muffins in this range is price inelastic.
  c. the demand for Pete's muffins in this range is unit elastic.
  d. the percentage change in quantity demanded must exceed the percentage change in product price.
  e. this is impossible since this would violate the law of demand.

Question 2

If a 10 percent cut in price causes a 15 percent increase in sales, then:
 a. total revenue will decrease.
  b. demand is price inelastic in this range.
  c. demand is price elastic in this range.
  d. demand is unit elastic in this range.
  e. total revenue will remain the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Athena23

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


dollx

  • Member
  • Posts: 558
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
The proportion of men and women with elevated blood pressure or taking hypertension medication incre The proportion of men and women with elevated blood pressure or taking hypertension medication incre
Alan Price - Poor People Alan Price - Poor People
The mortality rate in the United States increases with age and is lower for women than men at every ... The mortality rate in the United States increases with age and is lower for women than men at every ...
Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ... Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Video: What are Strong & Weak Acids and How they're different?

For a complete list of videos, visit our video library