Rick has a lemonade stand at a park. When the price of a bottle is $1, the quantity demanded is 500 per day. He wanted to experiment to find out if lowering the price ends up getting him a greater revenue. He decreased the price of a bottle to $0.80, and the quantity demanded increased to 600. From this information, we can conclude that the demand for Rick's lemonade is perfectly inelastic. elastic. unit elastic. inelastic. оооо
Rick has a lemonade stand at a park. When the price of a bottle is $1, the quantity demanded is 500 per day. He wanted to experiment to find out if lowering the price ends up getting him a greater revenue. He decreased the price of a bottle to $0.80, and the quantity demanded increased to 600. From this information, we can conclude that the demand for Rick's lemonade is perfectly inelastic. elastic. unit elastic. inelastic. оооо
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Rick has a lemonade stand at a park. When the price of a bottle is $1, the quantity demanded is 500 per day. He wanted to experiment to find out if lowering the price ends up getting
him a greater revenue. He decreased the price of a bottle to $0.80, and the quantity demanded increased to 600. From this information, we can conclude that the demand for Rick's
lemonade is
perfectly inelastic.
elastic.
unit elastic.
inelastic.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffcd128c9-925d-41f1-af9c-c8872f204368%2Fc7b148c3-37b6-455b-be99-b28b305541b8%2F5ttjcdg_processed.png&w=3840&q=75)
Transcribed Image Text:Rick has a lemonade stand at a park. When the price of a bottle is $1, the quantity demanded is 500 per day. He wanted to experiment to find out if lowering the price ends up getting
him a greater revenue. He decreased the price of a bottle to $0.80, and the quantity demanded increased to 600. From this information, we can conclude that the demand for Rick's
lemonade is
perfectly inelastic.
elastic.
unit elastic.
inelastic.
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