Draw the price effect and the quantity effect for a price change from $60 to $70. Which effect is larger? Does total revenue increase or decrease? No calculation is necessary.
Draw the price effect and the quantity effect for a price change from $60 to $70. Which effect is larger? Does total revenue increase or decrease? No calculation is necessary.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4-5B
- Draw the
price effect and the quantity effect for a price change from $60 to $70. Which effect is larger? Does total revenue increase or decrease? No calculation is necessary.
2. Draw the price effect and the quantity effect for a price change from $10 to $20. Which effect is more significant? Does total revenue increase or decrease? No calculation is necessary.
Transcribed Image Text:90
80
70
60
PRICE($
30
20
10
0
Demand
100
200
300
QUANTITY
400
500
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