If the demand for a good is relatively inelastic, an increase in the price of the good

Question:

If the demand for a good is relatively inelastic, an increase in the price of the good will generate

a. An increase in quantity demanded for the good and an increase in total revenue.

b. An increase in quantity demanded for the good and a decrease in total revenue.

c. A decrease in quantity demanded for the good and an increase in total revenue.

d. A decrease in quantity demanded for the good and a decrease in total revenue.

e. A decrease in quantity supplied and an increase in quantity demanded.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction To Economics Social Issues And Economic Thinking

ISBN: 9780470574782

1st Edition

Authors: Wendy A. Stock

See More Books

Question Posted: Oct 28, 2023 08:37 AM

See More Questions

1. If the demand for a product is highly elastic, a decrease in the price, all other things being equal, will result in: a. An increase in the quantity demanded and a decrease in the total revenue b....
4. Show how to transform the compound on the left into the compound on the right. Several steps will be involved. You may use any additional organic or inorganic compounds you wish. 1-butyne---> ->...
Multiple Choice 1. Which of the following is a market? a. A garage sale b. A restaurant c. The New York Stock Exchange d. An eBay auction e. All of the above 2. In a competitive market, a. There are...
Ivanhoe Company was formed on July 1, 2018 It was authorized to issue 285,500 shares of $10 par value common stock and 95,400 shares of 8 $25 par value, cumulative and nonparticipating preferred...
What factors influence a buyer's willingness to spend?
Use the information in Exercise 11 and assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April 2010, the company produced 875 units and incurred...
Pick a sample domain in which youre knowledgeable and build a concept map to represent that domain.
After discovering a new gold vein in the Colorado Mountains CTC Mining Corporation must decide whether to mine the deposit. The most cost-effective method of mining gold is sulfuric acid extraction,...
Equipment with a book value of $82,000 and an original cost of $170,000 was sold at a loss of $35,000. Paid $115,000 cash for a new truck. Sold land costing $320,000 for $415,000 cash, yielding a...
Marianne loves cinnamon rolls. Marianne always buys one cinnamon roll each morning, even when the price of a cinnamon roll increased from $1.50 to $2.50. Marianne's demand for cinnamon rolls is a....
If the demand for milk is inelastic, will a small reduction in the supply of milk result in an increase or a decrease in the total revenue earned by milk suppliers? Why?
A ball launched directly upward from the ground at an initial speed of $24.5 \mathrm{~m} / \mathrm{s}$ hits the ground $5.0 \mathrm{~s}$ later. What are (a) the ball's upward position 1. 0, 2. 0,...
Harvey Auto Parts purchased a new crane on September 1 for $35,000, paying $10,000 cash and signing a 7%, 12-month note for the remaining balance, interest to be paid at maturity. The crane is...
e4(k+1) Find the sum of the series. k = 1 8
Carla Vista Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan Plan assets $489,900 Projected benefit obligation 616,700...
Question 2 of 8 Shirts were purchased for $12.50 each and were marked up by $18.75. During Christmas, they were discounted by $6.85 per shirt. a. What was the rate of markdown? % Round to two decimal...
The cost versus quality decision is one that only few companies get right. What is the cost of quality? It is very high for some companies such as Ford and Bridgestone/Firestone, whose reputations...
Compare and contrast the merits of GNI, Net National Product, and Your Better Life Index as indicators of economic performance in Brazil, Russia, China, and India?
Select the correct answer for each of the following questions. 1. On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its...
How do supply chain management systems coordinate planning, production, and logistics with suppliers? a) Define a supply chain and identify each of its components. b) Explain how supply chain...
How do customer relationship management systems help firms achieve customer intimacy? a) Define customer relationship management and explain why customer relationships are so important today. b)...
What are the challenges that enterprise applications pose, and how are enterprise applications taking advantage of new technologies? a) List and describe the challenges posed by enterprise...
Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is...
Rowan Company is considering two alternative investment projects. Each requires a $263,000 initial investment. Project A is expected to generate net cash flows of $73,000 per year over the next six...
A company purchased 300 units for $30 each on January 31. It purchased 390 units for $39 each on February 28. It sold a total of 440 units for $40 each from March 1 through December 31. What is the...

If the demand for a good is relatively inelastic, an increase in the price of the good

Question:

Step by Step Answer:

The correct answer is d A decrease in quantity demanded ...View the full answer

Introduction To Economics Social Issues And Economic Thinking

Students also viewed these Business questions