If hot dog vendors at baseball games want to maximize their total sales revenue, they will have to
A) be willing to experience reduced hot dog expenditure by baseball fans.
B) set the price of their hot dogs so that the demand is unit elastic.
C) sell as many hot dogs as they can, even if it means lowering price.
D) raise their price, even if it means selling fewer hot dogs.
B
Economics
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According to your textbook, the notion of price "gouging" is problematic because
A) the higher prices are normally the result of decreases in supply and increases in demand. B) economists believe higher prices are always better than lower prices. C) economists want businesses to make high profits. D) None of the above.
Economics
Contrast the public interest theory of regulation with the legal cartel theory of regulation
What will be an ideal response?
Economics