You are the brand manager of Crest toothpaste and you observe that when you increase the price of Crest, your total revenue increases. How is that possible?
What will be an ideal response?
The demand for Crest toothpaste must be inelastic, so that the percentage increase in price is greater than the percentage decrease in quantity demanded, thereby increasing the total revenue.
Economics
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When a negative externality exists, the private cost of production ________ the social cost of production
A) is greater than B) is less than C) eliminates D) is equal to
Economics
The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. When Omar produces 2 bushels of rutabagas, his total profit equals
A) $0. B) $20. C) $28. D) -$8. E) $48.
Economics