Suppose the demand function of a product is given by q = 14-5/p. 1 < p< 10, where q is the quantity that can be sold every day on the market at unit price p. When p = 8, which one of the following statements is true? a) The elasticity of demand E< 1, the demand is elastic, and the revenue will increase if more products are sold at a lower price. Ob) The elasticity of demand E< 1, the demand is inelastic, and the revenue will increase if fewer products are sold at a higher price. c) The elasticity of demand E< 1, the demand is inelastic, and the revenue will increase if more products are sold at a lower price. d) The elasticity of demand E> 1, the demand is elastic, and the revenue will increase if more products are sold at a lower price. e) The elasticity of demand E> 1, the demand is inelastic, and the revenue will increase if fewer products are sold at a higher price. Of) The elasticity of demand E> 1, the demand is elastic, and the revenue will increase if fewer products are sold at a higher price.
Suppose the demand function of a product is given by q = 14-5/p. 1 < p< 10, where q is the quantity that can be sold every day on the market at unit price p. When p = 8, which one of the following statements is true? a) The elasticity of demand E< 1, the demand is elastic, and the revenue will increase if more products are sold at a lower price. Ob) The elasticity of demand E< 1, the demand is inelastic, and the revenue will increase if fewer products are sold at a higher price. c) The elasticity of demand E< 1, the demand is inelastic, and the revenue will increase if more products are sold at a lower price. d) The elasticity of demand E> 1, the demand is elastic, and the revenue will increase if more products are sold at a lower price. e) The elasticity of demand E> 1, the demand is inelastic, and the revenue will increase if fewer products are sold at a higher price. Of) The elasticity of demand E> 1, the demand is elastic, and the revenue will increase if fewer products are sold at a higher price.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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