Suppose a decrease in the supply of bottled water resulted in a decrease in revenue. This indicates that A. the demand for bottled water is price inelastic in the price range considered. B. the supply of bottled water is price inelastic in the price range considered. C. the supply of bottled water is price elastic in the price range considered. D. the demand for bottled water is price elastic in the price range considered.
Answers: 1
, where 
is the price and 
is the quantity demanded. This means that elasticity reflects what is the percentage change in quantity 
in the presence of a percentage change 
in prices.A decrease in supply would tipically rise prices, ceteris paribus.If the decrease in supply was the cause of a decrease in revenues, it means that the percentage change in demanded quantity as a consequence of the rise in prices was bigger than the change in prices.To see it more clearly, remember that the seller's revenue can be express as 
. If prices increased, but revenues fall, then 
, then 
, wich is consistent with an elastic range of demand.
Other questions on the subject: Business
Business, 22.06.2019 02:20, unicornsflyhigh
Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a
Answers: 2
Business, 22.06.2019 08:30, dezmondpowell
Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price
Answers: 1
Business, 22.06.2019 11:00, smartie80
Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period
Answers: 1
Business, 22.06.2019 11:50, chas8495
True or flase? a. new technological developments can us adapt to depleting sources of natural resources. b. research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. c. in order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. d. countries with few natural resources will always be poor. e. as long as real gdp (gross domestic product) grows at a slower rate than the population, per capita real gdp increases.
Answers: 2
Do you know the correct answer?
Suppose a decrease in the supply of bottled water resulted in a decrease in revenue. This indicates...
Questions in other subjects:
Mathematics, 28.12.2019 14:31
Chemistry, 28.12.2019 14:31
English, 28.12.2019 14:31
World Languages, 28.12.2019 14:31
History, 28.12.2019 14:31
Mathematics, 28.12.2019 14:31
Mathematics, 28.12.2019 14:31
