Table 7-11 -Refer to Table 7-11

question 168

Multiple Choice

Table 7-11
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Hourly } \\\text { Rental Rate } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (hours) }\end{array} \\\hline \$ 60 & 40 \\\hline 75 & 32 \\\hline 80 & 30 \\\hline 100 & 24 \\\hline\end{array}$$
-Refer to Table 7-11.Katie Graham owns a kayak rental service in Santa Barbara.Table 6.3 below shows her estimated demand schedule for kayak rentals per week.She would like to increase her sales revenue by changing the price she charges for rentals.At present she charges $75.Based on the information in the table,Katie

• A)is not able to increase her revenue by changing her price because the demand for kayak rentals is unit-elastic.
• B)should lower her price to $60 to increase her revenue because the demand for kayak rentals is price elastic.
• C)should raise her price to $80 to increase her revenue because the demand for kayak rentals is price inelastic.
• D)should raise her price to earn the most revenue.

---

Definitions:

Remedy at Law

Legal means to enforce a right or redress a wrong, typically involving monetary compensation.

Rule of Law

The principle that all individuals, institutions, and entities are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated.

Doctrines

Established principles or policies in law or religious beliefs that are taught and accepted as authoritative.

Administrative Law

The body of law that governs the activities of administrative agencies of government, including rules, regulations, procedures, and decisions.