When the local used bookstore prices economics books at $15.00 each, they generally sell 70 books per month. If they lower the price to $7.00, sales increase to 90 books per month.Given this information, we know that the price elasticity of demand for economics books is about 0.34, and an increase in price from $7.00 to $15.00 results in a decrease in total revenue. 2.91, and an increase in price from $7.00 to $15.00 results in an increase in total revenue. 2.91, and an increase in price from $7.00 to $15.00 results in a decrease in total revenue. 0.34, and an increase in price from $7.00 to $15.00 results in an increase in total revenue.
When the local used bookstore prices economics books at $15.00 each, they generally sell 70 books per month. If they lower the price to $7.00, sales increase to 90 books per month.Given this information, we know that the price elasticity of demand for economics books is about 0.34, and an increase in price from $7.00 to $15.00 results in a decrease in total revenue. 2.91, and an increase in price from $7.00 to $15.00 results in an increase in total revenue. 2.91, and an increase in price from $7.00 to $15.00 results in a decrease in total revenue. 0.34, and an increase in price from $7.00 to $15.00 results in an increase in total revenue.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 7E: In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price...
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When the local used bookstore prices economics books at $15.00 each, they generally sell 70 books per month. If they lower the price to $7.00, sales increase to 90 books per month.Given this information, we know that the price
0.34, and an increase in price from $7.00 to $15.00 results in a decrease in total revenue. |
||
2.91, and an increase in price from $7.00 to $15.00 results in an increase in total revenue. |
||
2.91, and an increase in price from $7.00 to $15.00 results in a decrease in total revenue. |
||
0.34, and an increase in price from $7.00 to $15.00 results in an increase in total revenue. |
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