Assume the Demand Function for SeatComfy's Table Chairs Is as Given

question 26

Multiple Choice

Assume the demand function for SeatComfy's table chairs is as given in the previous question (Q = 5,000 - 25P + 4I +10P_A - 15P_T) . Moreover, assume that currently P = 10, P_A = 15, I = 500, P_T = 100. Which of the following is true?

• A) If SeatComfy increases its price by 1%, sales will increase as well as total revenues.
• B) If SeatComfy decreases its price by 1%, sales will increase, while total revenues will decrease.
• C) If SeatComfy increases its price by 1%, sales will decrease, while total revenues will increase.
• D) If SeatComfy increases its price by 1%, sales will decrease as well as total revenues.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for rapid action in response to threats.

Internal Organs

Vital parts within the body, such as the heart, lungs, and liver, that perform essential functions required for survival.

Serviceable Associated Habits

Habits that are beneficial or useful in performing daily activities or achieving long-term goals.

Darwin

Refers to Charles Darwin, a naturalist known for his theory of evolution through natural selection, which had a profound impact on the understanding of species development.