Homework Answers
Answer is A. Total revenue decreases.
When demand is elastic then increase in price will decrease the total revenue because due to elastic demand change in quantity will be greater then change in price.
When demand is inelastic increase in price will increase the total revenue and decrease in price will decrease the total revenue.
When elasticity is equal to one then change in price will not change the total revenue.
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5. The price for a good has increased, and the price increase occurs in the elastic...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will increase when the price decreases? True or False? 3) The price elasticity of supply will be a smaller number when it is relatively easy for sellers to increase their supply. ( True or False)? 4) Demand is more elastic when the absolute value of the price elasticity of demand is larger. ( True or False)? 5) If the quantity demanded of one good increases...
1) If the quantity demanded of one good increases from 200 to 300 when the price...
1) If the quantity demanded of one good increases from 200 to 300 when the price of another good increases from $5 to $7, what is the Cross-Price Elasticity of Demand? a: -.4 b: 1.21 c: -1.21 D: .33 2) If the quantity demanded decreases from 480 to 460 when the price increases from $2 to $2.10, the price elasticity of demand in absolute value is: A: .88, B: 4.3 C: 1.14 D: 1.49 Based on your answer above, demand...
Which of the following statements is true? If the price of a good is lowered and...
Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...
23. Rank the price elasticity of demand from most ed from most elastic to least elastic...
23. Rank the price elasticity of demand from most ed from most elastic to least elastic for the following three Orowing three items: Alcoholiehavares all beer, and Molson Canadian be A Molson canadian beer all beer alcoholic beverages b. All beer, alcoholic beverages Molson Canadian beer C. Alcoholic beverages all beer Molson Canadian beer d. All beer. Molson Canadian beer alcoholic beverages 24. Which of the following could explain why the deman inelastic? wing could explain why the demand for...
How will shift right in supply affect equilibrium price, assuming demand remains constant? a. increase b....
How will shift right in supply affect equilibrium price, assuming demand remains constant? a. increase b. decrease c.will not affect it d. cannot be determined According to the law of demand, if the price of a good decreases, its Qd? a. decreases b. increases c. goes to zero d. stays constant According to the income effect, price changes equal changes in? a. money income b.real income c.demand d. utility on the demand curve a chance in price leads a. no...
Question 17 Which of the following statements is true? If the price of a good is...
Question 17 Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic, If the price of a good is raised and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue does not change demand is perfectly elastic, If the price of a good is lowered and total revenue increases, demand is inelastic.
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
33. A product that has a negative income elasticity of demand is a. a complement good....
33. A product that has a negative income elasticity of demand is a. a complement good. b. a normal good. c. a substitute good d. an inferior good. Suppose the Chicago Enforcers football team increases ticket prices by 10 percent and as a result the quantity of tickets demanded decreases by 7 percent. This response means that the demand for Enforcers tickets is a. unit clastic. b. elastic c. perfectly elastic. d. inelastic. 34. 35. When a market reaches allocative...
Price of movie tickets 5) D FIN 910 IND Thousands of movie tickets Figure 3 7)...
Price of movie tickets 5) D FIN 910 IND Thousands of movie tickets Figure 3 7) Refer to Figure 3 above. How do total expenditures on movie tickets vary along the demand curve? A)Since quantity demanded increases as price decreases, total expenditures increase. B)Since the quantity is sold at lower and lower prices, total expenditures decrease as quantity demandedincreases. C)Total expenditures remain the same between points along the demand curve. D)Total expenditures increase through the upper portion of the curve...
Price and marginal revenue (dollars per bottle) The graph shows Minnie's demand curve and marginal revenue...
Price and marginal revenue (dollars per bottle) The graph shows Minnie's demand curve and marginal revenue curve. At what price is Minnie's total revenue maximized and over what price range is the demand for water elastic? Why will Minnie not produce a quantity at which the market demand is inelastic? a Minnie's total revenue is maximized at a price of $ bottle. 56 The demand for water from Minnie's is elastic between the prices of a bottle. O A. zero...
Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...
23. Rank the price elasticity of demand from most ed from most elastic to least elastic for the following three Orowing three items: Alcoholiehavares all beer, and Molson Canadian be A Molson canadian beer all beer alcoholic beverages b. All beer, alcoholic beverages Molson Canadian beer C. Alcoholic beverages all beer Molson Canadian beer d. All beer. Molson Canadian beer alcoholic beverages 24. Which of the following could explain why the deman inelastic? wing could explain why the demand for...
Question 17 Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic, If the price of a good is raised and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue does not change demand is perfectly elastic, If the price of a good is lowered and total revenue increases, demand is inelastic.
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
33. A product that has a negative income elasticity of demand is a. a complement good. b. a normal good. c. a substitute good d. an inferior good. Suppose the Chicago Enforcers football team increases ticket prices by 10 percent and as a result the quantity of tickets demanded decreases by 7 percent. This response means that the demand for Enforcers tickets is a. unit clastic. b. elastic c. perfectly elastic. d. inelastic. 34. 35. When a market reaches allocative...
Price of movie tickets 5) D FIN 910 IND Thousands of movie tickets Figure 3 7) Refer to Figure 3 above. How do total expenditures on movie tickets vary along the demand curve? A)Since quantity demanded increases as price decreases, total expenditures increase. B)Since the quantity is sold at lower and lower prices, total expenditures decrease as quantity demandedincreases. C)Total expenditures remain the same between points along the demand curve. D)Total expenditures increase through the upper portion of the curve...
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