Question 15 of 21 sapling learning Label the following scenarios as examples of elastic, inelastic, or...

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Question 15 of 21 sapling learning Label the following scenarios as examples of elastic, inelastic, or unit elastic demand. Hint When Ruko, a device used to stream movies at home, increases prices by 42% total revenue decreases by 59%. When Cinema Supreme decreases ticket prices by 5%, total revenue does not change. When BlueBox, a DVD rental kiosk, increases its prices by 56%, total revenue increases by 22%. Previous Check Answer Elastic Unit elastic Inelastic Next Map 000 You can tell whether the price elasticity of demand is elastic, unit elastic, or inelastic based on whether the price effect or the quantity effect is larger. The price effect is the change in revenue due to a change in price whereas the quantity effect is the change in revenue due to the change in quantity demanded. Exit Question 15 of 21 sapling learning Label the following scenarios as examples of elastic, inelastic, or unit elastic demand. Hint When Ruko, a device used to stream movies at home, increases prices by 42% total revenue decreases by 59%. When Cinema Supreme decreases ticket prices by 5%, total revenue does not change. When BlueBox, a DVD rental kiosk, increases its prices by 56%, total revenue increases by 22%. Previous Check Answer Elastic Unit elastic Inelastic Next Map 000 You can tell whether the price elasticity of demand is elastic, unit elastic, or inelastic based on whether the price effect or the quantity effect is larger. The price effect is the change in revenue due to a change in price whereas the quantity effect is the change in revenue due to the change in quantity demanded. Exit

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Case1 It is the example of elastic demand as increase in prices causes decrease ... View the full answer