Suppose That at a Price of R300 Per Month, There

question 7

Multiple Choice

Suppose that at a price of R300 per month, there are 300 000 subscribers to a television service in Small Town. If Small Town Television raises its price to R400 per month, the number of subscribers will fall to 200 000. At which of the following prices does Small Town Television earn the greatest total revenue?

• A) R0 per month
• B) R300 per month
• C) R400 per month
• D) Either R300 or R400 per month because the price elasticity of demand is 1.0.

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Definitions:

Cerebellum

A part of the brain located at the back of the skull in vertebrates, responsible for coordinating and regulating muscular activity.

Coordination of Movement

The harmonious function of different muscles and senses to produce smooth, accurate, and appropriate movements in response to environmental demands.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Judging Distance

The cognitive and perceptual process of estimating the space between oneself and objects or points in the environment.