Table 6-5 -Refer to Table 6-5.Katie Graham Owns a Kayak Rental Service

question 76

Multiple Choice

Table 6-5

-Refer to Table 6-5.Katie Graham owns a kayak rental service in Santa Barbara.Table 6.5 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:

Basidia

Specialized spore-producing structures found in Basidiomycota fungi, typically shaped like a club.

Coenocytic

Refers to a cellular structure containing multiple nuclei within a shared cytoplasm, typically found in some fungi and algae.

Ascomycete

Member of a phylum of fungi characterized by the production of nonmotile asexual conidia and sexual ascospores.

Alternation of Generations

A reproductive cycle found in plants and some algae involving successive asexual and sexual generations.