14. Haynes Premier Breakfast has just raised the price of its popular biscuit. Assuming that the market faces inelastic demand, this action should: A) increase total revenues B) reduce total revenue as quantity sold decreases. C) drive rivals out of the market. D) deter competitive entry.

14. Haynes Premier Breakfast has just raised the price of its popular biscuit. Assuming that the market faces inelastic demand, this action should: A) increase total revenues B) reduce total revenue as quantity sold decreases. C) drive rivals out of the market. D) deter competitive entry.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter13: Between Competition And Monopoly

Section: Chapter Questions

Problem 5DQ

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14. Haynes Premier Breakfast has just raised the price of its popular biscuit.
Assuming that the market faces inelastic demand, this action should:
A) increase total revenues
B) reduce total revenue as quantity sold decreases.
C) drive rivals out of the market.
D) deter competitive entry.

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