3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.
3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:3. In each case below, determine the effect on the sellers' total revenue and identify whether
the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant
price range.
a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5,
monthly quantity demanded decreases from 2000 to 15000
b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded
from 20000 to 25000 cartoon.
c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000
copies occurs when its price is reduced from $10 to $ 9.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education