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Author Question: On a part of the demand curve where the price elasticity of demand is less than 1, a decrease in ... (Read 66 times)

kamilo84

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on: Jun 30, 2018
On a part of the demand curve where the price elasticity of demand is less than 1, a decrease in price:
 a. is impossible.
  b. will increase total revenue.
  c. will decrease total revenue.
  d. raises the price elasticity of demand.
  e. decreases quantity demanded.

Question 2

The short-run price elasticity of demand for airline travel is .05, while the long-run elasticity is 2.36 . This means that a significant increase in airline ticket prices will cause airline companies to:
 a. collect less revenue from short-notice travelers.
  b. collect more revenue from travelers who book well in advance.
  c. lose money on short-notice travelers.
  d. collect less revenue from travelers who book well in advance.
  e. lose many of its short-notice travelers.


kilada

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


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kamilo84

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Reply #2 on: Jun 30, 2018
Thank you


kilada

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Reply #3 on: Jun 30, 2018
No problemo


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