Based on the below table, we may conclude a. Total revenue in years 2, 3,4 and 5 is increasing due to increase in price b. Total revenues in years 2, 3,4 and 5 is increasing due to increase in sales O c. Both a and b O d. None of these PROFIT AND LOSS ASSUMPTION Year 1 Year 2 Year 3 Year 4 Year 5 Annual price (revenue) Increase Annual inflation (expense) increase Annual sales increase 0.00% 3.00% 3.00% 3.00% 3.00% 0.00% 3.00% 3.00% 3.00% 3.00% 0.00% 4.00% 7.00% 8.00% 11.00% INCOME Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Product A 12.500 0 13,375.0 13,776 2 14,189.5 14,615 2 Product B 13,000 0 13,390 0 13,791.7 14,205 4 14.631.6 Product C 13,000.0 13,390 0 13,791.7 14,205.4 14.631.6 Product D 6,750.00 6,952.50 7,161.08 7375.91 7.597.18

Based on the below table, we may conclude a. Total revenue in years 2, 3,4 and 5 is increasing due to increase in price b. Total revenues in years 2, 3,4 and 5 is increasing due to increase in sales O c. Both a and b O d. None of these PROFIT AND LOSS ASSUMPTION Year 1 Year 2 Year 3 Year 4 Year 5 Annual price (revenue) Increase Annual inflation (expense) increase Annual sales increase 0.00% 3.00% 3.00% 3.00% 3.00% 0.00% 3.00% 3.00% 3.00% 3.00% 0.00% 4.00% 7.00% 8.00% 11.00% INCOME Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Product A 12.500 0 13,375.0 13,776 2 14,189.5 14,615 2 Product B 13,000 0 13,390 0 13,791.7 14,205 4 14.631.6 Product C 13,000.0 13,390 0 13,791.7 14,205.4 14.631.6 Product D 6,750.00 6,952.50 7,161.08 7375.91 7.597.18

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Measuring The Cost Of Living

Section: Chapter Questions

Problem 9PA

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