1. Messiah Deweaver produces and sells green and white footballs. If he increases the price by 10 percent, he finds that the quantity demanded of these footballs decreases from 1025 to 975 balls per day. Assuming no other things change and using the midpoint method where appropriate, the price elasticity of demand for his footballs would be:
-
unitary elastic
-
2 and his total sales revenue would increase
-
2 and his total sales revenue would decrease
-
0.5 and his total sales revenue would increase
-
0.5 and his total sales revenue would decrease
2. Spartan Lemon-Lime and Sprite are substitute goods. An increase in the price of Spartan lemon-lime will:
-
shift the demand curve for Spartan Lemon-Lime to the left
-
shift the demand curve for Sprite to the left
-
shift the supply curve of Spartan Lemon-Lime to the right
-
decrease the price of Sprite
-
increase the price of Sprite
1. Messiah Deweaver produces and sells green and white footballs. If he increases the price by 10 percent, he finds that the quantity demanded of these footballs decreases from 1025 to 975 balls per day. Assuming no other things change and using the midpoint method where appropriate, the price elasticity of demand for his footballs would be:
| - |
unitary elastic |
| - |
2 and his total sales revenue would increase |
| - |
2 and his total sales revenue would decrease |
| - |
0.5 and his total sales revenue would increase |
| - |
0.5 and his total sales revenue would decrease |
2. Spartan Lemon-Lime and Sprite are substitute goods. An increase in the price of Spartan lemon-lime will:
| - |
shift the demand curve for Spartan Lemon-Lime to the left |
| - |
shift the demand curve for Sprite to the left |
| - |
shift the supply curve of Spartan Lemon-Lime to the right |
| - |
decrease the price of Sprite |
| - |
increase the price of Sprite |
