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Author Question: A firm is currently producing in the inelastic portion of its demand curve. What course of action ... (Read 27 times)

Evvie72

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on: May 25, 2020

Question 1

A restaurant owner knows that the demand for hamburgers is elastic. If she wants to increase total revenue from hamburger sales, she should
◦ decrease the price of hamburgers.
◦ decrease the supply of hamburgers.
◦ keep the price of hamburgers constant.
◦ increase the price of hamburgers.

Question 2

A firm is currently producing in the inelastic portion of its demand curve. What course of action should you recommend to this firm?
◦ Continue selling at the same price, but increase the number of units it produces.
◦ Reduce price, because if demand is inelastic and price is reduced, total revenue will increase.
◦ Continue producing at the current output level, because the firm will maximise its total revenue by producing in the inelastic portion of its demand curve.
◦ Increase price, because if demand is inelastic and price is increased, total revenue will increase.
Essential Economics for Business ¦ Sloman, Jones ¦ 5th Edition
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Marked as best answer by Evvie72 on May 25, 2020

Ksh22

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Reply #1 on: May 25, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Evvie72

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Reply 2 on: May 25, 2020
YES! Correct, THANKS for helping me on my review

aruss1303

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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