4.1. The owner of a local hot dog stand has estimated that if he lowers the price of hot dogs from RM2.00 to RM1.50, he will increase sales from 400 to 500 hot dogs per day. Using the midpoint formula, the demand for hot dogs is . A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. 4.2. At a price of RM20, a store can sell 24 picture frames a day. At a price of RM18 the store can sell 33 picture frames a day. Since total revenue decrease, demand must be by the price A) is increased; elastic B) is increased; inelastic C) is increased; unit elastic D) is decreased; elastic

4.1. The owner of a local hot dog stand has estimated that if he lowers the price of hot dogs from RM2.00 to RM1.50, he will increase sales from 400 to 500 hot dogs per day. Using the midpoint formula, the demand for hot dogs is . A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. 4.2. At a price of RM20, a store can sell 24 picture frames a day. At a price of RM18 the store can sell 33 picture frames a day. Since total revenue decrease, demand must be by the price A) is increased; elastic B) is increased; inelastic C) is increased; unit elastic D) is decreased; elastic

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question attached
You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is 25. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods.
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am. 111.
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6.
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