Question 14 Ed makes custom rugs and sells them in his online store. Recently, he raised his prices by 10% and calculated his elasticity of demand to be 0.7 (in absolute value). Which of the following statements is NOT true? Group of answer choices The increase in price will increase his revenues. The demand for his rugs is inelastic. The price change caused the number of rugs sold to increase by 7% The elasticity of demand is consistent with the uniqueness of his rugs (i.e., few close substitutes)
Question 14 Ed makes custom rugs and sells them in his online store. Recently, he raised his prices by 10% and calculated his elasticity of demand to be 0.7 (in absolute value). Which of the following statements is NOT true? Group of answer choices The increase in price will increase his revenues. The demand for his rugs is inelastic. The price change caused the number of rugs sold to increase by 7% The elasticity of demand is consistent with the uniqueness of his rugs (i.e., few close substitutes)
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
ChapterP2: Microeconomics Fundamentals
Section: Chapter Questions
Problem 9KC: Suppose Good Foods supermarket raises the price of its steak and finds that its total revenue from...
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Question 14
Ed makes custom rugs and sells them in his online store. Recently, he raised his prices by 10% and calculated his elasticity of
Group of answer choices
The increase in price will increase his revenues.
The demand for his rugs is inelastic.
The price change caused the number of rugs sold to increase by 7%
The elasticity of demand is consistent with the uniqueness of his rugs (i.e., few close substitutes)
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