A snowmobile dealer lowers its prices by 16 percent and the quantity demandedincreases by 2 percent. Thus the demand for snowmobiles from this dealer isand the dealer's total revenue willA) elastic; increaseB) inelastic; increaseC) inelastic; decreaseD) elastic; decrease

Answered: and the dealer's total revenue will…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A snowmobile dealer lowers its prices by 16 percent and the quantity demanded
increases by 2 percent. Thus the demand for snowmobiles from this dealer is
and the dealer's total revenue will
A) elastic; increase
B) inelastic; increase
C) inelastic; decrease
D) elastic; decrease

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A snowmobile dealer lowers it's price by 16 percent and the quantity demanded increases by 2 percent. Thus, the demand for snowmobiles from this dealer can be explained as :

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