Asked by
Jazzmine Williams
on Oct 26, 2024
Verified
When the price of chocolate-covered peanuts increases from $1.55 to $2.00,the quantity demanded decreases from 220 to 160.In this price range,the demand for chocolate-covered peanuts is _____,and total revenue will _____ when the price increases.
A) elastic;increase
B) elastic;decrease
C) inelastic;increase
D) inelastic;decrease
Total Revenue
The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.
Price Elasticity
The extent to which the amount of a good that is sought after moves due to a difference in price.
- Comprehend the principle of price elasticity of demand and the process of determining it through the midpoint formula.
- Study the effects of price modifications on overall revenue, with consideration of demand elasticity.
- Illustrate the distinction between elastic, inelastic, and unit-elastic demand.
Verified Answer
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Learning Objectives
- Comprehend the principle of price elasticity of demand and the process of determining it through the midpoint formula.
- Study the effects of price modifications on overall revenue, with consideration of demand elasticity.
- Illustrate the distinction between elastic, inelastic, and unit-elastic demand.