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Jackisha Perez
on Oct 26, 2024

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Suppose the price of barley increases by 16.53%.If breweries buy 3.28% less barley after the price increase,the total revenue for barley producers will _____ because the _____ effect is greater than the _____ effect.

A) decrease;quantity;price
B) increase;price;quantity
C) not change;quantity;price
D) increase;quantity;price

Total Revenue

The total amount of money a company receives from its goods or services, calculated by multiplying the price per unit by the number of units sold.

Quantity Effect

The impact on total consumption or production as a result of a change in quantity, holding price constant.

Price Effect

The change in consumption resulting from a change in the price of a good or service, influencing consumer behavior.

  • Assess the relationship between price adjustments and aggregate revenue, in the context of how demand reacts in terms of elasticity.
  • Understand the significance of the quantity effect and price effect on total revenue.
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Kundurthy venkata HimajaOct 31, 2024
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