If Sam wants to increase her total revenue from her sales of flowers and she knows that the demand for flowers is price elastic, she should
A) lower her price to increase the demand and shift the demand curve rightward.
B) raise her price because she knows that the quantity demanded will also increase.
C) raise her price because she knows that the percentage decrease in the quantity demanded will be smaller than the percentage increase in price.
D) lower her price because she knows that the percentage increase in the quantity demanded will be greater than the percentage decrease in price.
D
You might also like to view...
Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?
A. This economy produces two-thirds oranges and one-third candy bars. B. This economy produces food valued at $1.20. C. This economy produces $7.00 worth of food. D. This economy produces 15 food items.
The unemployment rate is calculated by dividing the number of unemployed and looking for work by the sum of the number employed and the number unemployed and looking for work
Indicate whether the statement is true or false
The American Medical Association is responsible for many of the characteristics of the modern health care delivery system
a. True b. False
A rational decision maker compares the expected marginal cost to the expected marginal benefit of any activity
a. True b. False