A manufacturer of ginseng tea found that when it lowered the price of a can of...
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A manufacturer of ginseng tea found that when it lowered the price of a can of its product from $8 to $7, total revenue declined and when it raised the price from $8 to $9 and total sales revenue again declined. Given this information, which of the following statements is correct? The demand for the product is inelastic in the $7 to $8 range The demand for the product is elastic in the $7 to $8 price range $8 cannot be an equilibrium price for this product d. The demand for the product is inelastic in the $8 to $9 price range A manufacturer of ginseng tea found that when it lowered the price of a can of its product from $8 to $7, total revenue declined and when it raised the price from $8 to $9 and total sales revenue again declined. Given this information, which of the following statements is correct? The demand for the product is inelastic in the $7 to $8 range The demand for the product is elastic in the $7 to $8 price range $8 cannot be an equilibrium price for this product d. The demand for the product is inelastic in the $8 to $9 price range
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Date When price decreases 8 to 7 total from declined which shows there is revenue a dvii... View the full answer
Related Book For
Business Statistics A First Course
ISBN: 978-0321979018
7th edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan
Posted Date:
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