Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is:
a. inelastic, and total revenue will increase.
b. elastic, and total revenue will increase.
c. inelastic, and total revenue will decrease.
d. elastic, and total revenue will decrease.
e. unit elastic, and total revenue will remain the same.
b
Economics
You might also like to view...
Based on the figure above, in which quarter or quarters did a peak occur?
A) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure B) in 2013, 2nd quarter C) in 2014, 2nd quarter D) between 2013, 2nd quarter to 2014, 2nd quarter E) There are no peaks illustrated in the figure.
Economics
The costs to firms of changing prices are called menu costs
Indicate whether the statement is true or false
Economics