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 41 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
Excellent

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo
The number of words correctly completed in the New York Times crossword puzzle increases with age ... The number of words correctly completed in the New York Times crossword puzzle increases with age ...
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
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 ...
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Autonomic Nervous System Animation

For a complete list of videos, visit our video library