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Author Question: Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises ... (Read 85 times)

Awilson837

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  • Posts: 509
on: Jul 1, 2018
Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises the price by 5 percent,
 a. revenues will rise 5 percent
  b. quantity demanded will rise 5 percent
  c. total revenues will not change
  d. revenues will fall
  e. revenues will fall 5 percent

Question 2

If demand is unit elastic, a price reduction will
 a. increase revenues
  b. reduce revenues
  c. reduce quantity demanded
  d. have no effect on revenues
  e. increase profits


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eliasc0401

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

D


Awilson837

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  • Posts: 509
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

strudel15

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  • Posts: 324
Reply 3 on: Yesterday
Excellent

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