the pr Change Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be -4.1. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 87%. Abe must have his prices by 27.87 Abe's total revenue The manager expects the number of websites designed to by At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 15%. She estimates that Webs-R-Us has a price elasticity of demand at -0.30. -43.32 increased and total revenue to increased. decrease increase. Ø 0 %

the pr Change Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be -4.1. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 87%. Abe must have his prices by 27.87 Abe's total revenue The manager expects the number of websites designed to by At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 15%. She estimates that Webs-R-Us has a price elasticity of demand at -0.30. -43.32 increased and total revenue to increased. decrease increase. Ø 0 %

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Each scenario gives some information about price elasticity of demand. For each, calculate the missing data, and determine if
the price change under consideration will increase, decrease, or not change the firm's total revenue.
Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be -4.1. Last month, Abe tried a new
marketing scheme which decreased the number of cars sold by 87%.
Abe must have
his prices by -27.87
Abe's total revenue
by
increased
and total revenue to
increased.
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 15%.
She estimates that Webs-R-Us has a price elasticity of demand at -0.30.
The manager expects the number of websites designed to
decrease
increase.
%.
e
%

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