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MrPorter Sells 10 Bottles of Champagne Per Week at $50

question 253

Multiple Choice

Mr.Porter sells 10 bottles of champagne per week at $50 per bottle.He can sell 11 bottles per week if he lowers the price to $45 per bottle.The quantity and the price effects on total revenue would be,respectively,an increase of _____ and a decrease of _____.


Definitions:

Bluegrass Albums

Collections or compilations of music that belong to the bluegrass genre, characterized by string instruments and roots in American folk music.

Revenues

The complete sum of funds a company acquires from selling goods or delivering services over a specific time frame.

Unit Elasticity

A scenario in which the percentage change in quantity demanded or supplied is equal to the percentage change in price, resulting in no change in total revenue.

Total Spending

The aggregate amount of money spent by consumers, businesses, and the government in an economy over a specific period.

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