Mr. Parker sells 10 bottles of wine per week at $50 per bottle. He can sell 11 bottles per week if he lowers the price to $45 per bottle. The quantity effect of the sale of an additional bottle would be _____, whereas the price effect of the sale of an additional bottle would be _____.
A)$450; -$500
B)$495; -$550
C)$45; -$5
D)$45; -$50

Question

Quizplus · Accepted Answer

The Answer of Mr. Parker sells 10 bottles of wine per week at $50 per bottle. He can sell 11 bottles per week if he lowers the price to $45 per bottle. The quantity effect of the sale of an additional bottle would be _____, whereas the price effect of the sale of an additional bottle would be _____.
A)$450; -$500
B)$495; -$550
C)$45; -$5
D)$45; -$50

Mr Parker Sells 10 Bottles of Wine Per Week at $50