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Homework answers / question archive / 1)With inelastic demand, A price increase reduces quantity demanded by a smaller percentage so that total revenue reduces

1)With inelastic demand, A price increase reduces quantity demanded by a smaller percentage so that total revenue reduces

Economics

1)With inelastic demand,

A price increase reduces quantity demanded by a smaller percentage so that total revenue reduces.

A price decrease increases quantity demanded by a smaller percentage so that total revenue increases.

A price decrease increases quantity demanded by a smaller percentage so that total revenue reduces.

2)Consider figure 1. Suppose that figure I shows the market for blueberry muffins Which of the following can happen as a result of an increase in the price of lemon poppy seed muffins (assuming they are substitutes)? a) A shift in demand from dl to d2. b) A shift in supply from si to s2. c) A shift in demand from d3 to d2. d) A shift in supply from 3 to 52. 14- Quantity traded has increased and the price has decreased for ramen noodles (an inferior good). Which of the following explains this situation better? a) An increase in the price of a substitute b) A decrease in consumer income. c) An increases in the cost of production. d) None of the above. 15. If demand increases and supply decreases a) Quantity traded increases. b) Price increases c) Quantity traded decreases. d) Price decreases 16-Which of the following is correct: a) When the price elasticity of demand is equal to 0, the firm's total revenue is not affected by price changes. b) A firm's profit goes up if it charges lower prices than the market price when demand is perfectly elastic. c) A firm's profit goes up if it charges higher prices than the market price when demand is perfectly elastic d) None
Es the market for blueberry muffins. d. Which of the following can happen as d3 S3 $ 2 sl e B Figure 1 g umber of producers causes.

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