and the dealer's total revenue will elastic; increase inelastic; increase

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
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A snowmobile dealer lowers its prices by 16 percent and the quantity demanded
increases by 2 percent. Thus the demand for snowmobiles from this dealer is
and the dealer's total revenue will
A) elastic; increase
B) inelastic; increase
C) inelastic; decrease
D) elastic; decrease
Transcribed Image Text:A snowmobile dealer lowers its prices by 16 percent and the quantity demanded increases by 2 percent. Thus the demand for snowmobiles from this dealer is and the dealer's total revenue will A) elastic; increase B) inelastic; increase C) inelastic; decrease D) elastic; decrease
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A snowmobile dealer lowers it's price by 16 percent and the quantity demanded increases by 2 percent. Thus, the demand for snowmobiles from this dealer can be explained as : 

 

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