Question

resuit in a quahtity demanded O1 quantity demanded and price change by the same percent as we move along the demand curve. d. c. price will rise by an infinite amount when there is a change in quantity demanded. 14. When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to S70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is 1.50, and an increase in price will result in an increase in total revenue for good A 1.50, and an increase in price will result in a decrease in total revenue for goo 0.67, and an increase in price will result in an increase in total revenue for good A . d. 0.67, and an increase in price will result in a decrease in total revenue for good A. 15. A city wants to raise r evenues to build a new municipal swimming pool next year. The mayor suggests that the city raise the price of admission to the current municipal pools this year to raise revenues. Th manager suggests that the city lower the price of admission to raise revenues. Who is correct? a. the mayor b. the city manager c. The answer depends on the price elasticity of demand. man The answer depends on the costs of construction of the new municipal swimming pool 16. A city wants to raise revenues to build a new municipal swimming pool next year. The mayor sug gests that e city raise the price of admission to the current municipal pools this year to raise revenues. The ci ty manager suggests that the city lower the price of admission to raise revenues. Who is co a. b. c- rrect? Both the mayor and city manager would be correct if demand were price elastic. Both the mayor and city manager would be correct if demand were price inelastic The mayor would be correct if demand were price elastic; the city manager would be co demand were price inelastic. rrect if correct if demand were price inelastic; the city manager would be correct if e mayor would be demand were price elastic. 17. Which of the following could be the price elasticity of demand for a good for which an âncrease in price would increase revenue? 0.2

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Answer 1

uro 스으 -R teso