Royal Hardware sold 8 pounds of bolts yesterday at a price of $3.00 per pound. This...
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Royal Hardware sold 8 pounds of bolts yesterday at a price of $3.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots the price of bolts (measured in dollars per pound) and the quantity sold (measured in pounds). PRICE (Dollars per pound) 10 9 8 0 10 There are 2 3 4 6 BOLTS (Pounds) 5 + Yes 18 O No 9 Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one small square is therefore 10 On this graph, the area of the purple rectangle corresponds to: small squares in the purple shaded rectangle. Royal Hardware's revenue from selling bolts, measured in dollars O The price of the bolts, measured in dollars per pound The number of bolts that Royal Hardware sold, measured in pounds None of these-the area has no meaning New Price/Quantity Now suppose Royal Hardware raises its price to $5.00 per pound of bolts. As a result, it now sells 6 pounds of bolts. Use the blue rectangle to draw the area that corresponds to the new price and quantity. Did raising the price of bolts increase Royal Hardware's revenue? Royal Hardware sold 8 pounds of bolts yesterday at a price of $3.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots the price of bolts (measured in dollars per pound) and the quantity sold (measured in pounds). PRICE (Dollars per pound) 10 9 8 0 10 There are 2 3 4 6 BOLTS (Pounds) 5 + Yes 18 O No 9 Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one small square is therefore 10 On this graph, the area of the purple rectangle corresponds to: small squares in the purple shaded rectangle. Royal Hardware's revenue from selling bolts, measured in dollars O The price of the bolts, measured in dollars per pound The number of bolts that Royal Hardware sold, measured in pounds None of these-the area has no meaning New Price/Quantity Now suppose Royal Hardware raises its price to $5.00 per pound of bolts. As a result, it now sells 6 pounds of bolts. Use the blue rectangle to draw the area that corresponds to the new price and quantity. Did raising the price of bolts increase Royal Hardware's revenue?
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The image is a graph representing a supply and demand scenario for a product specifically bolts sold by Royal Hardware The graph plots price in dollar... View the full answer
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
Posted Date:
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