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In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic, or unit-elastic in the relevant price range

Economics

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In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic, or unit-elastic in the relevant price range.

 

a. When the price per package of a brand of chocolate chip cookies increases from $3 to $4, monthly quantity demanded decreases from 20,000 to 14,000 packages.

 

   Initial total revenue is $  and final total revenue is $  . Demand is  

(Click to select)

  

unit-elastic

  

elastic

  

inelastic

  .

 

 

b. A fall in the price of sugar from $5 to $4 per carton raises weekly quantity demanded from 25,000 to 30,000 cartons.

 

   Initial total revenue is $  and final total revenue is $  . Demand is  

(Click to select)

  

elastic

  

inelastic

  

unit-elastic

  .

 

 

c. A rise in the quantity demanded of a monthly fashion magazine from 35,000 to 40,000 copies occurs when its newsstand price is reduced from $9 to $8.

 

   Initial total revenue is $  and final total revenue is $  . Demand is  

(Click to select)

  

inelastic

  

elastic

  

unit-elastic

  .

 

 

d. Daily quantity demanded of a particular model of earphones rises from 2,000 to 2,400 earphones if the price drops from $180 to $150.

 

   Initial total revenue is $  and final total revenue is $  . Demand is  

(Click to select)

  

unit-elastic

  

elastic

  

inelastic

  .