If a 10 percent cut in price causes a 15 percent increase in sales, then:
a. total revenue will decrease.
b. demand is price inelastic in this range.
c. demand is price elastic in this range.
d. demand is unit elastic in this range.
e. total revenue will remain the same.
c
You might also like to view...
Which of the following changes would tend to both decrease the quantity of a good traded and increase the price?
a. An increase in demand. b. A decrease in demand. c. An increase in supply. d. A decrease in supply.
Between 1865 and 1914, individuals in households could use the income they did not spend to do what?
(a) Purchase stocks (b) Buy bonds (c) Place money in savings accounts (d) All of the above
The owners of professional sports teams, such as those in the NFL, make collective decisions and agreements about sharing merchandising and television revenue, adding or disallowing expansion teams, and the scheduling of games. These decisions and agreements reflect that of a
a. monopoly b. cartel c. conglomerate firm d. vertical merger e. competitive industry
Which of the following provides the best explanation for diseconomies of scale?
a. the firm is too small to take advantage of specialization. b. large management structures may be bureaucratic and inefficient. c. if there are too many employees, the work place becomes crowded and people become less productive. d. average fixed costs are rising.