Unformatted text preview: EStudem:ﬂ Extractor: kollhoom alkofalu Assign-neat: Hw Ch6-2 l Ennis: 10.521509 Comm: Eco 230I-05 ETime: 12:24 PM Book: Hubbard-’O'Brien: Microeconomics E 2e 5' If the price elasticity of demand for canned soup is estimated at - 1.62. What happens to sales revenue if the price of canned soup rises? use. It rises.
(:28. It falls by 162 percent.
22ft: It falls.
in). It rises by 1.62 percent. 1
l (1 Suppose a decrease in the supply of wheat resulted in an increase in revenue. This indicates that ‘1; r
i the supply of wheat curve must be vertical. E : ' :3. he demand for wheat curve must be vertical. E gait; the resulting increase in price is proportionately greater than decrease in quantity sold.
the decrease in quantity sold is proportionately larger than the resulting change in price. 0 Suppose when Nablom's Bakery raised the price of its breads by 10 percent. the quantity demanded
felt by IS percent. What is the effect on sales revenue? Sales revenue increased. Sales revenue remained unchanged. E 1 Cannot be determined without infonnalion on prices.
: 8’; Sales revenue decreased. ...
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- Fall '08
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