Suppose the price of cauliflower increases by 16.53%. If consumers buy 3.28% less cauliflower after the price increase, the total revenue for cauliflower producers will _______ because the _______ effect is greater than the _______ effect.- ○ increase; price; quantity- ○ decrease; quantity; price- ○ not change; quantity; price- ○ increase; quantity; priceThis exercise involves understanding the relationship between price changes, demand, and total revenue, focusing on how a significant change in price can outweigh changes in quantity demanded. ## Demand Function ProblemSuppose the demand function for flashlights is expressed as $ Q = 100 - 4p $. If a flashlight currently sells for $10, then the point price elasticity of demand equals:- ○ -4- ○ -2.5- ○ -0.67- ○ -1.5### ExplanationIn this problem, you are given a linear demand function $ Q = 100 - 4p $ and asked to determine the point price elasticity of demand at a specific price point, $ p = \$10 $.The price elasticity of demand (Ed) at a given point can be calculated using the formula:\[ Ed = \frac{dQ}{dP} \times \frac{P}{Q} \]Where:- $ \frac{dQ}{dP} $ is the derivative of the demand function with respect to price $ p $.- $ P $ is the price level.- $ Q $ is the quantity demanded at that price level.

Total revenue is the product of price and quantity demanded.

Suppose the price of cauliflower increases by 16.53%. If consumers buy 3.28% less cauliflower after the price increase, the total revenue for cauliflower producers will because the effect is greater than the effect. oooo increase; price; quantity decrease; quantity; price not change; quantity; price increase; quantity; price

Suppose the price of cauliflower increases by 16.53%. If consumers buy 3.28% less cauliflower after the price increase, the total revenue for cauliflower producers will because the effect is greater than the effect. oooo increase; price; quantity decrease; quantity; price not change; quantity; price increase; quantity; price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Typed and correct answer please. I'll rare
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