Question

e/My courses/ECON247v10Unit 3/Quiz 3for Credit wen the local used bookstortprices economics books at $100 ean generamy sen 70 per mont. i, they lower the price to S70 each the elasticity of demand for economics books and what action should the store take? Select one b.2.91the store should owr prices so rse sotal revenue C 2.91, the store shouid rase prices to rase toal revenue d.0.714, the store shouild raise prices to raise total evenn

Answer 1

When the loeal wid booktore prices econamias boks ai o eh, tud analy sul 70 per month. Let ut put the abow informalitn in a taba. Price Guanli 70 90 (4) 100 Te formula for elastialz t demand u いで -1..(m!" t kennt hue anaaydedernard twhera 40-70) (0+0 70-100)÷ (70-00 20÷16。 (-30- 170 20 /6 0 _ 20 170 60 0 800 1t0 -0.714 e n prizes would caue The valu 0714 vetraut, that lt in quavrthli domonded to fall t to raie tal revenue.. D. The corveet aneer ia Opin