LISA BETH Mustard Company undertakes an advertising campaign and finds that within the industry's relevant price range, the price elasticity of demand for its own mustard fell from 3.5 to 0.94 . As a result, we would expect that LISA BETH
a. would raise its price to increase total revenue
b. would cut its price to increase total revenue
c. would increase output to increase total revenue
d. would increase output to reduce average total cost
e. operates in a perfectly competitive market
A
You might also like to view...
The narrowest definition of the money supply (M1) includes
a. cash and travelers' checks. b. cash, travelers' checks, and savings account balances. c. cash, checking account balances, and travelers' checks. d. cash, bank deposits, and money market accounts.
The Board of Governors of the Federal Reserve
A) is made up of seven members. B) is a group of advisers reporting to the President. C) is located in New York City. D) members are appointed to four-year terms by the President and confirmed by the Senate. E) all of the above
Which of the following goods is likely to have the most elastic demand curve?
A. Tobacco products. B. Gasoline. C. Medical care. D. Honda automobiles.
In some markets for used goods:
A. the seller has more information than the buyer about the quality of the good. B. the buyer has more information than the seller about the quality of the good. C. low-quality used goods will be underpriced. D. the quality of used goods sold in the market will typically rise over time.