6. Consider the following demand function for X-caliber beer. Qs 100 – 5Px -.51 Where Px is the price of a 6 pack of the product and I is the annual income (in *000's of dollars). If Px = $6.00 and I = $20, which of the following can you conclude? a. Profits would rise if the price was increased. b. X-caliber beer is a cyclical good. c. Total revenues would fall if price was increased. d. X-caliber beer is a normal good.

6. Consider the following demand function for X-caliber beer. Qs 100 – 5Px -.51 Where Px is the price of a 6 pack of the product and I is the annual income (in *000's of dollars). If Px = $6.00 and I = $20, which of the following can you conclude? a. Profits would rise if the price was increased. b. X-caliber beer is a cyclical good. c. Total revenues would fall if price was increased. d. X-caliber beer is a normal good.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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