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Q2. Lab Made Liquid Nitrogen Ice Cream Laboratory is the first company introducing the made-to-order liquid nitrogen ice cream in Hong Kong. Their shops are located in Tsim Sha Tsui and Tai Hang where there are lots of shopping malls and food courts. Suppose after several months of operation, the company increases their prices of ice cream to a much higher level and hope to earn higher revenue as they are the first seller of made-to-order liquid nitrogen ice cream in Hong Kong. However, the fact was that they were suffered from the loss of revenue after increasing the price. Explain why this is possible with a diagram. (Ref: 151651)

Q2. Lab Made Liquid Nitrogen Ice Cream Laboratory is the first company introducing the made-to-order liquid nitrogen ice cream in Hong Kong. Their shops are located in Tsim Sha Tsui and Tai Hang where there are lots of shopping malls and food courts. Suppose after several months of operation, the company increases their prices of ice cream to a much higher level and hope to earn higher revenue as they are the first seller of made-to-order liquid nitrogen ice cream in Hong Kong. However, the fact was that they were suffered from the loss of revenue after increasing the price. Explain why this is possible with a diagram. (Ref: 151651)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q2. Lab Made Liquid Nitrogen Ice Cream Laboratory is the first company introducing the made-to-order liquid nitrogen ice cream in Hong Kong. Their shops are located in Tsim Sha Tsui and Tai Hang where there are lots of shopping malls and food courts. Suppose after several months of operation, the company increases their prices of ice cream to a much higher level and hope to earn higher revenue as they are the first seller of made-to-order liquid nitrogen ice cream in Hong Kong. However, the fact was that they were suffered from the loss of revenue after increasing the price. Explain why this is possible with a diagram. (Ref: 151651)
Transcribed Image Text:Q2. Lab Made Liquid Nitrogen Ice Cream Laboratory is the first company introducing the made-to-order liquid nitrogen ice cream in Hong Kong. Their shops are located in Tsim Sha Tsui and Tai Hang where there are lots of shopping malls and food courts. Suppose after several months of operation, the company increases their prices of ice cream to a much higher level and hope to earn higher revenue as they are the first seller of made-to-order liquid nitrogen ice cream in Hong Kong. However, the fact was that they were suffered from the loss of revenue after increasing the price. Explain why this is possible with a diagram. (Ref: 151651)
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