Question
A shop produces and sells 100 luxury hampers a day at $60 each. When it raises the price to $66 it decreased its sale to
A shop produces and sells 100 luxury hampers a day at $60 each. When it raises the price to $66 it decreased its sale to 80 hampers a day. Which of the following statements is correct?
- The elasticity of demand is approximately 1.
- The shop's revenues would stay the same.
- The demand for hampers is relatively elastic (.
- The shop should raise its price further in order to increase its sales revenues.
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Fundamentals Of Taxation 2015
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
8th Edition
1259293092, 978-1259293122, 1259293122, 978-1259293092
