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.

---

Definitions:

Mystery

Something that is difficult or impossible to understand or explain; often a topic of intrigue or curiosity.

Binocular Vision

The ability to maintain visual focus on an object with both eyes, creating a single visual image and enabling depth perception.

Same Object

Referring to an item that is identical in nature, character, or function to another, often used in discussions about perception and cognition.

Develop

The process of growth, progress, or evolution through successive stages in natural, social, or organizational contexts.