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.

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Definitions:

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and clothing, that are essential to maintaining life.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's own potential and self-fulfillment.

Growth Needs

The desire for personal development, self-improvement, and the realization of one's potential.

McClelland's Theory of Needs

A psychological theory of motivation that asserts individuals are motivated by three primary needs: achievement, affiliation, and power.