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Carnival Cruise Lines Increased the Price of Its Seven-Day Cruise

Question 8

Multiple Choice

Carnival Cruise Lines increased the price of its seven-day cruise package by 20 percent recently. If demand for its cruises is negatively elastic, which of the following is the likely outcome of the increase in price?


A) The company will see an increase in customer bookings.
B) The company's profit will decrease though its revenue will increase.
C) The company will see a decrease in total revenue.
D) There will be no change in the number of cruises booked.
E) The company's total revenue will increase.

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