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3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.

3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 2PA
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3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.
Transcribed Image Text:3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.
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