If a 4 percent rise in the price of peanut butter lowers the total revenue received by the producers of peanut butter by 4 percent, the demand for peanut butter is ____. a. Elastic b. Inelastic 2. An increase in subway fares in New York City will boost your expenditures on subway rides if your demand for subway rides is . a. Elastic b. Inelastic

If a 4 percent rise in the price of peanut butter lowers the total revenue received by the producers of peanut butter by 4 percent, the demand for peanut butter is ____. a. Elastic b. Inelastic 2. An increase in subway fares in New York City will boost your expenditures on subway rides if your demand for subway rides is . a. Elastic b. Inelastic

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

If a 4 percent rise in the price of peanut butter lowers the total revenue received by the producers of peanut butter by 4 percent, the demand for peanut butter is ____.

a. Elastic

b. Inelastic

2. An increase in subway fares in New York City will boost your expenditures on subway rides if your demand for subway rides is .

a. Elastic

b. Inelastic

explain the answers

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