Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2SQ
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb668bc-10a4-4aaf-a388-7b2b8ddb3a25%2Fd33a7b79-93d0-481c-aaad-291b91b188b0%2F735i3r_processed.png&w=3840&q=75)
Transcribed Image Text: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
Expert Solution
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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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