When a university bookstore prices chemistry textbooks at $200 each, it generally sells 120 books per month. If it lowers the price to $160, sales increase to 160 books per month. Given this information, we know that the price elasticity of demand for chemistry books is about
a. 1.29, and a decrease in price from $200 to $160 results in an increase in total revenue.
b. 1.29, and a decrease in price from $200 to $160 results in a decrease in total revenue.
c. 0.78, and a decrease in price from $200 to $160 results in an increase in total revenue.
d. 0.78, and a decrease in price from $200 to $160 results in a decrease in total revenue.
a
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Barter?
Refer to Table 3-2. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. If the price of cashews rises from $4 to $6, the market quantity demanded would
A) decrease by 39 lbs. B) increase by 33 lbs. C) decrease by 33 lbs. D) increase by 39 lbs.
A profit-maximizing firm should spend an additional dollar on advertising so long as this expenditure results in more than one dollar of
a. additional sales. b. reduced costs. c. increased profits. d. demand.
In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made
a. True b. False