When the Local Used Bookstore Prices Economics Books at $15

question 91

Multiple Choice

When the local used bookstore prices economics books at $15 each,it generally sells 70 books per month.If it lowers the price to $7,sales increase to 90 books per month.Given this information,we know that the price elasticity of demand for economics books is about

• A) 2.91, and an increase in price from $7 to $15 results in an increase in total revenue.
• B) 2.91, and an increase in price from $7 to $15 results in a decrease in total revenue.
• C) 0.34, and an increase in price from $7 to $15 results in an increase in total revenue.
• D) 0.34, and an increase in price from $7 to $15 results in a decrease in total revenue.

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Definitions:

Detailing Costs

The process of breaking down and itemizing the expenses associated with a project, product, or service.

Business Document

A formal written record that is used for business purposes, such as contracts, reports, memos, or proposals.

Psychological Weight

The perceived importance or emotional impact of a thought, decision, or object on an individual’s mind.

Yardstick Reports

Comparative reports that measure the performance of an organization against a standard or benchmark.