42. Chuck Grim has a price elasticity of demand for beer of 1.2. Suppose that the price of beer is increased by 10 percent. What will happen to the total amount Chuck spends on beer?A) It will not changeB) It will decreaseC) It will increase D) It is impossible to tellAnswer: BTopic: Price Elasticity of DemandDifficulty: 1 EasyLearning Objective: 04-02Bloom’s: Level 3 ApplyAACSB: Analytic[QUESTION]43. If the price elasticity of demand for orange juice is 0.8, then a reduction in the price of orange juice will cause buyers to buy:Reference: 04-44Use the following to answer questions 44-45:[QUESTION]44. Refer to the table above. If the price starts falling from $5, at what price range does demand become inelastic?
45. Refer to the table above. What is the price that yields the maximum total revenue?Reference: 04-46Use the following to answer questions 46-50:[QUESTION]46. Refer to the above graph. If the price is P3, then the total revenue is represented by areas:A) B + C + DB) E + F + GC) B + C + D + E + F + GD) A + B + C + D + E + F + GAnswer: C
Topic: Price Elasticity of DemandDifficulty: 1 EasyLearning Objective: 04-02Bloom’s: Level 3 ApplyAACSB: AnalyticRefer to: 04-46[QUESTION]47. Refer to the above graph. If the price decreases from P3to P2, then the loss in total revenue is areas:[QUESTION]
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