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16 Suppose that Jimmy John's Sandwich shop raised the price of their sandwiches by $1 per sandwich and their total revenue dropped. From this, we know A. demand for Jimmy John's sandwiches is income elastic over this range of prices, B. demand for Jimmy John's sandwiches is unit elastic over this range of prices. c. demand for Jimmy John's sandwiches is income inelastic over this range of prices. D. demand for Jimmy John's sandwiches is price inelastic over this range of prices, E. demand for Jimmy John's sandwiches is price elastic over this range of prices.

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Related questions

28. Refer to Table 4.1.1 below. If the price of good A falls from $4 to $3, A) total revenue will increase. B) total revenue will remain constant. c) demand is elastic in this range. D) demand is unit elastic in this range. E) demand is inelastic in this range. Table 4.1.1 Demand schedule for good A. Quantity demanded (units) Price (dollars per unit) 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Use the table below to answer the following questions. Table 4.1.1 Demand schedule for good A. Price Quantity demander (dollars per unit) (units) 9.00 8.00 2,000 7.00 4,000 6.00 6,000 5.00 8,000 4.00 10,000 3.00 12,000 2.00 14,000 1.00 16,000 18,000 39) Refer to Table 4.1.1. If the price of good A falls from $4 to $3, A) demand is unit elastic in this range. B) total revenue will increase. C) demand is inelastic in this range. D) total revenue will remain constant. E) demand is elastic in this range.

True/False
If the quantity demanded for a product increases from 100 to 150 units when
the price decreases from $14 to $10, the price elasticity of demand for this product,
using the midpoint formula, in this price range is 1.2


A product with a price elasticity of demand equal to 1.5 is described as price
inelastic.

Demand tends to be inelastic at higher prices and elastic at lower prices.

Multiple Choice
If price rises from $80 to $90 and quantity demanded falls from 250 to 200,
then
a. The demand is inelastic
b. Total receipts rise.
c. Elasticity is equal to 0.625.
d. Elasticity is greater than one.

When Detroit’s bus fare increased from 40 cents to 60 cents, the number of riders
decreased from 800 per week to 620 per week. Over the price range given, the demand
curve for bus service in Detroit is
a. Elastic
b. Unit elastic
c. Inelastic
d. Impossible to determine

Stan’s Discount Tires reduced the price on its Goodyear radial tires from $65
per tire to $55 per tire. The following month, sales of this tire increased from
320 units to 500 units. The coefficient of elasticity for this tire was
a. 1.0
b. 0.63
c. 3.65
d. 1.33

A 20 percent increase in Miss Sarlo’s income resulted in an increase in her
annual consumption of steak from 10 to 15 pounds. Miss Sarlo’s income elasticity
of demand for steak is
a. 0.25
b. 0.50
c. 2.0
d. 2.5

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