If Sam wants to increase her total revenue from her sales of flowers and she knows that the demand for flowers is price inelastic, she should
A) lower her price to increase the demand and shift the demand curve rightward.
B) raise her price because she knows that the quantity demanded will also increase.
C) raise her price because she knows that the percentage decrease in the quantity demanded will be smaller than the percentage increase in price.
D) lower her price because she knows that the percentage increase in the quantity demanded will be greater than the percentage decrease in price.
Correct Answer:
Verified
Q121: Demand is unit elastic when
A) the slope
Q122: Producers' total revenue will increase if
A) income
Q123: If Sam wants to increase her total
Q124: Producers' total revenue will decrease if
A) income
Q125: At a local ice cream parlor, when
Q127: To maximize its revenue
A) a firm facing
Q128: If demand is inelastic, an increase in
Q129: If University of Nebraska increased its season
Q130: When demand is _, a decrease in
Q131: A local transit authority charges $1 for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents