If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from

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If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000, then:

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the demand for Pete's muffins in this range is price elastic.

the demand for Pete's muffins in this range is price inelastic.

the demand for Pete's muffins in this range is unit elastic.

the percentage change in quantity demanded must exceed the percentage change in product price.

this is impossible since this would violate the law of demand.

Posted Date: Jun 13, 2024 12:11 PM

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If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from

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