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)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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