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Consider the following table of own price elasticity information for six different markets. Market 1 2 3 4 5 6 Own Price Elasticity of Demand -0.1511 -0.0045 -1.2211 -3.7887 -0.7897 -1.0035 4 If each market experienced a 5 percent increase in price, you would conclude that: Total market revenues will increase in all markets because prices are increasing. Total market revenues will increase in markets 1,2, and 5 and decrease in markets 3,4, and 6.

Consider the following table of own price elasticity information for six different markets. Market 1 2 3 4 5 6 Own Price Elasticity of Demand -0.1511 -0.0045 -1.2211 -3.7887 -0.7897 -1.0035 4 If each market experienced a 5 percent increase in price, you would conclude that: Total market revenues will increase in all markets because prices are increasing. Total market revenues will increase in markets 1,2, and 5 and decrease in markets 3,4, and 6.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 7E: In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price...
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Consider the following table of own price elasticity information for six different markets. Market 1 2 3 4 5 6 Own Price Elasticity of Demand -0.1511 -0.0045 -1.2211 -3.7887 -0.7897 -1.0035 4 If each market experienced a 5 percent increase in price, you would conclude that: Total market revenues will increase in all markets because prices are increasing. Total market revenues will increase in markets 1,2, and 5 and decrease in markets 3,4, and 6.
Transcribed Image Text:Consider the following table of own price elasticity information for six different markets. Market 1 2 3 4 5 6 Own Price Elasticity of Demand -0.1511 -0.0045 -1.2211 -3.7887 -0.7897 -1.0035 4 If each market experienced a 5 percent increase in price, you would conclude that: Total market revenues will increase in all markets because prices are increasing. Total market revenues will increase in markets 1,2, and 5 and decrease in markets 3,4, and 6.
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