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31 May 2018
38. Over a given range of prices, the own-price elasticity of demand for Oat Flakes, a President's Choice product, is a constant 2.0. Therefore, in this range, a 1.5 percent increase in price will causc (approximately): (A) a 3 % decrease in quantity demanded (Q) and a 1 % decrease in Total Revenue (TR) (B) a 2 % decrease in Q and a 3% decrease in TR (C) a 1 % decrease in Q and a 1.5 % decrease in TR (D) a 2% decrease in Q and a 4% decrease in TR (E) a 3 % increase in Q and a 4.5 % decrease in TR (F) a 2% increase in Q and a 4% decrease in TR (G) a 1 % increase in and a 3 % decrease in TR (H) a 3 % increase in Q and a 10 % decrease in TR (I) a 3 % decrease in Q and a 1.5 % decrease in TR (J) a 2 % decrease in Q and a 3 % increase in TR
38. Over a given range of prices, the own-price elasticity of demand for Oat Flakes, a President's Choice product, is a constant 2.0. Therefore, in this range, a 1.5 percent increase in price will causc (approximately): (A) a 3 % decrease in quantity demanded (Q) and a 1 % decrease in Total Revenue (TR) (B) a 2 % decrease in Q and a 3% decrease in TR (C) a 1 % decrease in Q and a 1.5 % decrease in TR (D) a 2% decrease in Q and a 4% decrease in TR (E) a 3 % increase in Q and a 4.5 % decrease in TR (F) a 2% increase in Q and a 4% decrease in TR (G) a 1 % increase in and a 3 % decrease in TR (H) a 3 % increase in Q and a 10 % decrease in TR (I) a 3 % decrease in Q and a 1.5 % decrease in TR (J) a 2 % decrease in Q and a 3 % increase in TR
Tod ThielLv2
3 Jun 2018
Related textbook solutions
Related questions
Use the following demand schedule for a monopolist to calculate total revenue and marginal revenue. For each price, indicate whether the demand is elastic, unit elastistic or inelastic. Using the data from the demand schedule,graph the demand curve, the marginal revenue curve and the total revenue curve. Identify the elastic, unit elastic and inelastic segments along the demand curve.
| Price(P) | Quantitiy demanded (Q) | Total Renenue (TR) | Marginal Revenue (MR) | Price elasticity of demand  |
| 5 | 0 | |||
| 4.5 | 1 | |||
| 4 | 2 | |||
| 3.5 | 3 | |||
| 3 | 4 | |||
| 2.5 | 5 | |||
| 2 | 6 | |||
| 1.5 | 7 | |||
| 1 | 8 | |||
| 0.5 | 9 | |||
| 0 | 10 |
