Occurs when an increase in sales exactly offsets a

Info icon This preview shows pages 16–19. Sign up to view the full content.

View Full Document Right Arrow Icon
44. _____ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same. a. Inelastic demand b. Functional elasticity of demand c. Unitary elasticity d. Highly elastic demand e. Fixed elasticity
Image of page 16

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ANS: C Unitary elasticity is a situation in which total revenue remains the same when prices change. PTS: 1 REF: 300 OBJ: 19-3 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 45. When price decreases and total revenue falls, demand is: PTS: 1 REF: 300 OBJ: 19-3 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 46. When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600, demand doubled from 4 units sold per month to 8 units per month. However, total revenue dropped. This is an example of: PTS: 1 REF: 300 OBJ: 19-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 47. When Nesco brand food hydrators sold for $59.99, Nesco sold 90 dehydrators. When the company dropped the price of its dehydrators to $44.95, it sold 145 dehydrators. Demand for the food dehydrat- ors appears to be: PTS: 1 REF: 300 OBJ: 19-3 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 48. Critics claim bank ATMs take advantage of the _____ of customers who suffer a poverty of time and have a strong need for convenience. a. elasticity of demand b. inelastic demand schedule
Image of page 17
c. unitary supply and demand d. ROI characteristics e. supply characteristics ANS: B Customers are paying a premium for the convenience of ATM use. PTS: 1 REF: 301 OBJ: 19-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 49. All of the following factors directly affect the elasticity of demand EXCEPT: PTS: 1 REF: 301 OBJ: 19-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing
Image of page 18

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 19
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern