Suppose That the Demand for Men's Ties Is Price Inelastic

question 35

Multiple Choice

Suppose that the demand for men's ties is price inelastic for the range of prices between $10 and $12. If Joe raises the price of the ties in his shop from $10 to $12, what will happen to Joe's total revenues?

• A) Total revenues will decrease.
• B) Total revenues will increase.
• C) Total revenues will not change.
• D) Total revenues will have no relationship to the quantity of ties demanded.

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Definitions:

Hockey Pucks And Hockey Sticks

Items used in the sport of hockey, with the puck being the object teams attempt to score with, and the stick used to hit the puck.

Necessity

A good or service that is essential for survival and basic well-being, such as food or shelter.

Price-Inelastic

Describes a situation where the demand for a product or service is relatively unaffected by changes in its price.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.