Each small square in the grid for this graph has one side equal to 1 pound of screws and one side equal to 1 dollar per pound. The area of one small square is therefore There are small squares in the purple shaded rectangle. On this graph, the area of the purple rectangle corresponds to: King Hardware's revenue from selling screws, measured in dollars The price of the screws, measured in dollars per pound The number of screws that King Hardware sold, measured in pounds None of these-the area has no meaning

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter19: Using Economics To Understand The World Around You
Section: Chapter Questions
Problem 6E
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King Hardware sold 7 pounds of screws yesterday at a price of $5.00 per pound. This point is represented by the black plus symbol on the diagram
below, which plots the price of screws (measured in dollars per pound) and the quantity sold (measured in pounds).
PRICE (Dollars per pound)
10 ↑
9
8
1
0
←
0
1
2
3
+
Đ
6 7 8 9 10
4 5
SCREWS (Pounds)
New Price/Quantity
Each small square in the grid for this graph has one side equal to 1 pound of screws and one side equal to 1 dollar per pound. The area of one small
square is therefore
Transcribed Image Text:King Hardware sold 7 pounds of screws yesterday at a price of $5.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots the price of screws (measured in dollars per pound) and the quantity sold (measured in pounds). PRICE (Dollars per pound) 10 ↑ 9 8 1 0 ← 0 1 2 3 + Đ 6 7 8 9 10 4 5 SCREWS (Pounds) New Price/Quantity Each small square in the grid for this graph has one side equal to 1 pound of screws and one side equal to 1 dollar per pound. The area of one small square is therefore
Each small square in the grid for this graph has one side equal to 1 pound of screws and one side equal to 1 dollar per pound. The area of one small
square is therefore
There are
On this graph, the area of the purple rectangle corresponds to:
small squares in the purple shaded rectangle.
O King Hardware's revenue from selling screws, measured in dollars
The price of the screws, measured in dollars per pound
O The number of screws that King Hardware sold, measured in pounds
O None of these-the area has no meaning
Now suppose King Hardware raises its price to $6.00 per pound of screws. As a result, it now sells 5 pounds of screws.
Use the blue rectangle to draw the area that corresponds to the new price and quantity.
Did raising the price of screws increase King Hardware's revenue?
Yes
O No
Transcribed Image Text:Each small square in the grid for this graph has one side equal to 1 pound of screws and one side equal to 1 dollar per pound. The area of one small square is therefore There are On this graph, the area of the purple rectangle corresponds to: small squares in the purple shaded rectangle. O King Hardware's revenue from selling screws, measured in dollars The price of the screws, measured in dollars per pound O The number of screws that King Hardware sold, measured in pounds O None of these-the area has no meaning Now suppose King Hardware raises its price to $6.00 per pound of screws. As a result, it now sells 5 pounds of screws. Use the blue rectangle to draw the area that corresponds to the new price and quantity. Did raising the price of screws increase King Hardware's revenue? Yes O No
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