Dusty Rags, Inc

question 85

Multiple Choice

Dusty Rags, Inc.provides janitorial services to retail stores.Dusty had been charging $10 per hour and selling 400 hours of service per week at that rate.When he raised his price to $15 per hour, his customers cut back to 300 weekly hours of service.Which of the following is true?

• A)Revenue went from $4, 000 per week to $4, 500 per week, indicating that the demand curve for his services must have shifted to the right.
• B)Revenue went from $4, 000 per week to $4, 500 per week, indicating that the demand for his services must be elastic.
• C)Revenue went from $4, 000 per week to $4, 500 per week, indicating that the demand for his services must be inelastic.
• D)Revenue went from $400 to $300 per week, indicating that demand must be elastic.
• E)Revenue went from $10 to $15 per week, indicating that demand must be inelastic.

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Definitions:

Sociocultural Bias

Prejudice or discrimination based on societal norms or cultural differences.

Environmental Scanning

The process of collecting, analyzing, and using information about trends, events, and relationships in an organization's external environment.

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Regulations

Rules or directives made and maintained by an authority to regulate behavior, typically in the context of legal or governmental systems to ensure fair practices, safety, and standards.