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Homework answers / question archive / 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

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

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

  .

 

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