If a Firm Finds That It Can Sell $13,000 Worth

question 241

Multiple Choice

If a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and $11,000 worth of it when its price is $6, then

• A)the demand for the product is elastic in the $6-$5 price range.
• B)the demand for the product must have increased.
• C)elasticity of demand is 0.74.
• D)the demand for the product is inelastic in the $6-$5 price range.

---

Definitions:

Price Discriminate

A practice where a seller charges different prices to different customers for the same product or service, often based on the willingness to pay.

Revenue

The total income generated from the sale of goods or services related to a company's primary operations.

Damaged Goods

Items that are broken, defective, or otherwise impaired, reducing their usefulness or value.

High-value Users

Individuals or entities that contribute significantly to a company's revenue, often through consistent purchases or use of high-tier services.