Along a demand curve with unitary elasticity everywhere, total revenue: a. increases and then decreases as...
Along a demand curve with unitary elasticity everywhere, total revenue:
a. increases and then decreases as output increases b. decreases as output increases c. decreases and then increases as output increases d. remains constant as output increases e. increases as output increases
Homework Answers
The total revenue is calculated by price multiplied by quantity demanded, if the price elasticity of demand is unit elastic the changes in the prices will be equally matched by the changes in price. The total revenue will be the same at every price level.
If the demand is inelastic an increase in the price would increase the total revenue and a decrease in the price to a fall in the total revenue.
If the demand is elastic, an increase in the price decreases the total revenue and a decrease in the price would increase the total revenue.
Ans: d). Remains constant as output increases.
Add Answer to:
Along a demand curve with unitary elasticity everywhere, total
revenue:
a. increases and then decreases as...
For each of the following situations, state whether total revenue received by the seller increases, decreases,...
For each of the following situations, state whether total revenue received by the seller increases, decreases, or does not change. Type your answer in the blank space provided. Your answers should be increase, decrease, or does not change. a) If price elasticity of demand is -1.00 and price increases, total revenue b) If price elasticity of demand is -1.9 and price increases, total revenue c) If price elasticity of demand is -0.18 and price increases, total revenue d) If price...
9. Elasticity and total revenue The following graph shows the demand curve for kumquats. Points A,...
9. Elasticity and total revenue The following graph shows the demand curve for kumquats. Points A, B, C, and D mark price ranges over which you will be asked to calculate the price elasticity of demand for this good. Use the purple rectangle labeled Total Revenue (diamond symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, select the shaded area with your mouse. You will not be graded...
The demand curve for a monopolist's product is shown. The point UD is the point along the curve where price elasticity of demand is unitary. With this information, use the straight-line tool to draw the marginal revenue curve, stretching from one axis to
The demand curve for a monopolist's product is shown. The point UD is the point along the curve where price elasticity of demand is unitary. With this information, use the straight-line tool to draw the marginal revenue curve, stretching from one axis to the other. To refer to the graphing tutorial for this question type, please click here.
5. The variation in elasticity and total revenue along a demand curve The following graph shows...
5. The variation in elasticity and total revenue along a demand curve The following graph shows the daily demand curve for bippitybops in New York City. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 100 Total Revenue 80 O 70 2 60 Q 50 T O 40 30 20 10 Demand 0 6 12 18 24 30 36...
If the demand elasticity is more than 1 in absolute value and the supply decreases, which...
If the demand elasticity is more than 1 in absolute value and the supply decreases, which of the following statements is true? A. Revenue for the firm increases. B. Revenue for the firm decreases. C. Revenue for the firm remains unchanged. D. Revenue for the firm increases by 25%. E. We need more information to determine what happens to revenues.
In which of the following situations will total revenue increase? a. Price elasticity of demand is...
In which of the following situations will total revenue increase? a. Price elasticity of demand is -1.2, and the price of the good increases. b. Price elasticity of demand is -0.5, and the price of the good increases. c. Price elasticity of demand is -3.0, and the price of the good increases. d. We don't have enough information to determine total revenue. e. None of the above are correct.
6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in...
6. Elasticity and total revenueThe following graph shows the daily demand curve for bikes in New York City.Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.Note: You will not be graded on any changes made to this graph.According to the midpoint method, the price elasticity of demand between points A and B is approximately _______ Suppose the price of bikes is currently $ 200 per bike, shown as point A on the initial graph....
Total revenue a) always increases as price increases b) increases as price increases, as long as...
Total revenue a) always increases as price increases b) increases as price increases, as long as demand is elastic c) decreases as price increases, as long as demand is inelastic d) remains unchanged as price increases when demand is unit elastic
6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in...
6. Elasticity and total revenueThe following graph shows the daily demand curve for bikes in Dallas.Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.Note: You will not be graded on any changes made to this graph.On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $ 50, $ 75, $ 100, $ 125, $ 150, $ 175, and $ 200 per...
5. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Miami. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes
5. Elasticity and total revenueThe following graph shows the daily demand curve for bikes in Miami.Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.Note: You will not be graded on any changes made to this graph.On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per bike. According to the midpoint method, the price...
9. Elasticity and total revenue The following graph shows the demand curve for kumquats. Points A, B, C, and D mark price ranges over which you will be asked to calculate the price elasticity of demand for this good. Use the purple rectangle labeled Total Revenue (diamond symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, select the shaded area with your mouse. You will not be graded...
5. The variation in elasticity and total revenue along a demand curve The following graph shows the daily demand curve for bippitybops in New York City. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 100 Total Revenue 80 O 70 2 60 Q 50 T O 40 30 20 10 Demand 0 6 12 18 24 30 36...
If the demand elasticity is more than 1 in absolute value and the supply decreases, which of the following statements is true? A. Revenue for the firm increases. B. Revenue for the firm decreases. C. Revenue for the firm remains unchanged. D. Revenue for the firm increases by 25%. E. We need more information to determine what happens to revenues.
Total revenue a) always increases as price increases b) increases as price increases, as long as demand is elastic c) decreases as price increases, as long as demand is inelastic d) remains unchanged as price increases when demand is unit elastic
Most questions answered within 3 hours.
-
A 2500 kg satellite is flying through empty space at speed vi =
20km/s. Find the...
asked 33 seconds from now -
Describe the four stages of extravasation
Describe the function of neutrophils
Compare innate and adaptive immunity...
asked 2 minutes ago -
A roads department wants to capitalize annual maintenance fees
of $5 million. It applies to the...
asked 6 minutes ago -
Question 6 (1 point) Landmark Coal operates a mine. During July,
the company obtained 500 tons...
asked 10 minutes ago -
A 4.0 cm -tall object is 10 cm in front of a converging lens
that has...
asked 8 minutes ago -
Chase is currently trading at $66.02. Analysts predict that
there is a 20 % probability that...
asked 22 minutes ago -
Calculate the amount of heat needed to boil 120.g of
acetic acid (HCH3CO2), beginning from a temperature...
asked 30 minutes ago -
What conservation laws are involved in the computation
of the initial velocity of a projectile using...
asked 45 minutes ago -
Suppose that the following is an internal node of a B+ tree.
Which pointer is the...
asked 52 minutes ago -
If you have 140. mL of a 0.100
M MOPS buffer at pH 7.20 and you...
asked 1 hour ago -
Assume that the economy is characterized by the following
behavioral equations
C = 160 + 0.6YD...
asked 1 hour ago -
Suppose that the first national bank currently holds a total of
37 million dollars in deposits...
asked 1 hour ago