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

question 227

Multiple Choice

Table 6-5

-Refer to Table 6-5. Katie Graham owns a kayak rental service in Santa Barbara. Table 6.3 below 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:

Mutual Agreement

A consensus reached by two or more parties where all individuals involved agree upon terms or conditions.

Promote Individuality

Encouraging or supporting the unique qualities and self-expression of individuals.

Team Conflict

The disagreements or tensions that arise among members within a team, often due to differing opinions, personalities, or goals.

Virtual Teams

Teams that work together over distance, connected by electronic communication technologies, without the necessity of physical presence.