1. At a price of $5, quantity demanded is 70; and at a price of $7,...

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1. At a price of $5, quantity demanded is 70; and at a price of $7,...

1. At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue ________ by the price increase, demand must be ________.

A.is unchanged; unit elastic

B.is increased; elastic

C.is decreased; inelastic

D.is unchanged; elastic

2. Demand determines ________ entirely when ________ is perfectly inelastic.

A.quantity; supply

B.price; supply

C.price and quantity; supply

D.price and quantity; demand

business economics

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Answer 1

Answer #1

1. At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue is unchanged by the price increase, demand must be unit elastic. (percent change in quantity demanded = percent change in price level)

2. Demand determines price entirely when supply is perfectly inelastic.

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Answer 2

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1. At a price of $5, quantity demanded is 70; and at a price of $7,...

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1. At a price of​ $5, quantity demanded is​ 70; and at a price of​ $7,...

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1. At a price of $5, quantity demanded is 70; and at a price of $7,...

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