The price elasticity of demand for a product is -1.00. You know that... a. Sales Revenue...
The price elasticity of demand for a product is -1.00. You know that...
a. Sales Revenue ("Total Revenue") will increase if we raise the price.
b. Sales Revenue ("Total Revenue") will increase if we lower the price.
c. Sales Revenue ("Total Revenue") is maximized. It will fall if we change the price at all.
d. Not enough information to answer this question.
Homework Answers
Ans: Sales Revenue ("Total Revenue") is maximized. It will fall if we change the price at all.
Explanation:
PED is 1 at the middle point if a linear demand curve where total revenue is maximum. Any deviation from this point leads to fall in total revenue.
Thus, option [c] is correct answer.
Add Answer to:
The price elasticity of demand for a product is -1.00. You know
that...
a. Sales Revenue...
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.
Which of the following statements regarding price elasticity of demand is true? O The revenue for...
Which of the following statements regarding price elasticity of demand is true? O The revenue for a product's sales is maximized where price elasticity = -1 because this is where changes in unit sales and unit price exactly offset each other O The revenue for a product's sales is maximized where price elasticity= -1 because this is where the quantity sales and market share are maximized O The revenue for a product's sales is maximized where price elasticity is less...
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...
Price Elasticity of Demand: Chippers Cookie Bakery Price Elasticity of Demand measurers how changed in a...
Price Elasticity of Demand: Chippers Cookie Bakery Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result...
Question 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the...
Question 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the firm lowers price by 10%. Which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 100%. O Revenue will not change, because the increase in the quantity demanded will just offset the lower price. Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the...
Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and...
Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and the firm lowers price by 10%. Then which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 7% Revenue will fall, because the quantity demanded will not change O Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the increase in the quantity demanded...
If an 8% decrease in price leads to a 4% increase in the quantity demanded of...
If an 8% decrease in price leads to a 4% increase in the quantity demanded of the good, as a result of the price change, the total revenue for this product will: a) decrease b) increase c) not change d) double If a 12% increase in price leads to a 6% decrease in quantity demanded of the good, as a result of the price change, the total revenue for the product will: a) not change b) decrease c) increase d)...
QUESTION 10 The price elasticity of demand for gasoline is -0.25. If we expect the price...
QUESTION 10 The price elasticity of demand for gasoline is -0.25. If we expect the price of gasoline to increase by 8 percent, what is the expected change in the quantity of gasoline demanded? A. Quantity declines by 2 percent B. Quantity declines by 8 percent C. Quantity increases by 2 percent D. Quantity declines by 4 percent QUESTION 11 The income elasticity of demand for bananas is -0.1. Is this good normal or inferior? A. Normal B. Neither normal...
explain why revenue is maximized when price elasticity of demand is 1 (one)? I have searched...
explain why revenue is maximized when price elasticity of demand is 1 (one)? I have searched about this, and it seems to me that at unity elastic demand as the price change there will be the same percentage change in demand thus the revenue will not change, so how the above question asking this question regards
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result in changes...
Which of the following statements regarding price elasticity of demand is true? O The revenue for a product's sales is maximized where price elasticity = -1 because this is where changes in unit sales and unit price exactly offset each other O The revenue for a product's sales is maximized where price elasticity= -1 because this is where the quantity sales and market share are maximized O The revenue for a product's sales is maximized where price elasticity is less...
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 14 0.25 pts 14. Price elasticity of demand is known to be -10.0, and the firm lowers price by 10%. Which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 100%. O Revenue will not change, because the increase in the quantity demanded will just offset the lower price. Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the...
Question 13 0.25 pts 13. Price elasticity of demand is known to be - 0.7, and the firm lowers price by 10%. Then which of the following expectations is most accurate? Revenue will fall, because the quantity demanded will drop by 7% Revenue will fall, because the quantity demanded will not change O Revenue will rise, because the increase in the quantity demanded will more than offset the lower price. Revenue will fall, because the increase in the quantity demanded...
Most questions answered within 3 hours.
-
Clark Heter is an industrial engineer at Lyons Products. He
would like to determine whether there...
asked 49 minutes ago -
3. Use a text editor to create a comma-delimited file of user
IDs and passwords. Revise...
asked 34 minutes ago -
Jensen and Associates has a projected balance
sheet that includes the following accounts. What is the...
asked 7 minutes ago -
implement a doubly-linked list in C. Each node in the linked list should contain a string,...
asked 29 minutes ago -
What are some best practices and things to avoid when developing
a PowerPoint presentation or file
asked 32 minutes ago -
Consider the ways that the government can get involved in
economic issues. What role do you...
asked 8 minutes ago -
Sodium carbonate is added to the tea mixture, in part, to form
the sodium salt of...
asked 30 minutes ago -
he plant started to purify its wastewater before discharging it
into the lake. How long will...
asked 49 minutes ago -
Thiazyl fluoride, F3NS is a colourless gas. Using concepts of
electronegativity, formal charge etc. determine the...
asked 52 minutes ago -
1. Why is an explicit inflation target a bad policy?
2. MV=PQ If M grows, then...
asked 25 minutes ago -
A 1.50 kg sample of water at 15.0°C is in a calorimeter. You
drop a piece...
asked 51 minutes ago -
For the assignment this week, use Microsoft Word or Microsoft
Excel to create your own Comparing...
asked 28 minutes ago