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If the Price Were Increased from $94 to $96 and Quantity

question 222

Essay

If the price were increased from $94 to $96 and quantity demanded fell from 38 to 37,calculate elasticity;state whether demand is elastic,unit elastic,or inelastic,and find how much total revenue was when the price was $94 and $96.


Definitions:

Financing Activity

Transactions and events where cash is raised or repaid to investors, such as issuing stock, borrowing money, or paying dividends.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and are not currently outstanding.

Issuance of Bonds

The process by which a company or government raises capital by selling bonds to investors, which are debt securities obligating the issuer to pay the bondholder a specified sum of money at future dates.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

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