If Price Were Increased from $25 to $26 and Quantity

question 130

Essay

If price were increased from $25 to $26 and quantity demanded fell from 10 to 9,calculate elasticity;state whether demand is elastic,unit elastic,or inelastic;and find out how much total revenue was when price was $25 and $26.

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Definitions:

Appraisal Costs

Expenses associated with evaluating and inspecting products to ensure they meet quality and compliance standards.

Internal Failure Costs

Internal Failure Costs are expenses incurred when a product fails to meet quality standards before it is shipped to customers, including scrap, rework, and downtime.

External Failure Costs

Costs that arise when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document detailing the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.