Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPhone. The CEO decided to decrease the price of iPhones in an attempt to increase total revenue from iPhone sales
One of his employees, Jess, disagrees and suggests that an iPhone price increase will increase total revenue. Who is CORRECT? A) The CEO is correct if demand is price elastic.
B) The CEO is correct if demand is price inelastic.
C) Jess is correct if demand is price elastic.
D) Jess is correct if demand is unit elastic.
A
You might also like to view...
Holding everything else constant, if total factor productivity increases, the debt-to-GDP ratio will ________, and if the labor force growth rate increases, the debt-to-GDP ratio will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
How does a decline in the real interest rate cause an increase in investment?
What will be an ideal response?
Mercantilist policy is to do everything it can to promote exports and to discourage imports
a. True b. False Indicate whether the statement is true or false
When we assume that consumers want to pay the lowest price possible, we assume that consumers are:
A. deceitful. B. rational. C. cheap. D. informed.