Question

Essay question 1-2 paragraphs each please: What effect does a price hike have on the total...

Essay question 1-2 paragraphs each please:

What effect does a price hike have on the total revenue of the producers?

Homework Answers

Answer #1

The effect of a price hike on total revenue depends on the price elasticity of demand.
When the demand is inelastic i.e. price elasticity of demand is less than 1, then price hike leads to increase in total revenue for the producers.
When the demand is elastic i.e. price elasticity of demand is more than 1, then price hike leads to decrease in total revenue for the producers.
When the demand is unitary elastic i.e. equal to 1, then price hike leads to no change in total revenue.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Essay question 1-2 paragraphs each please: Use the idea of external costs to explain why some...
Essay question 1-2 paragraphs each please: Use the idea of external costs to explain why some cities have laws against late-night rock concerts.
1. What effect, if any, does each of the following events have on the price elasticity...
1. What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?   The virtual reality technology becomes more inexpensive and popular in business online conferences. Reduced corporate earnings lead to cuts in travel budgets and increase the share of expenditures on corporate jet travel. 2. 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies (in the...
Please provide 2 to 3 paragraphs response to the following question. What is the difference between...
Please provide 2 to 3 paragraphs response to the following question. What is the difference between general obligation bonds and revenue bonds? What are the advantages and disadvantages of each?
Short Essay. Please answer in essay form (at least 3 paragraphs per question) any 1 of...
Short Essay. Please answer in essay form (at least 3 paragraphs per question) any 1 of the 2 questions listed below. Choose one (1) of the following questions. Which of the three IPE approaches, Realism/Mercantilism (R/M), Classical-Liberalism (C-L), or Marxism/Structuralism (M/S), best accounts for the influence of fossil fuels (oil, coal, gas) in the IPE in the 21st century? Explain. - Or - Sustainable development is seen by some as a hopeful solution to many global issues. • What is...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. 1. What is the purpose of performance appraisals? a. How would you measure a nurse’s productivity? b. Discuss the multiple forms that violence can take within the workplace. c. Why is violence prevalent in a health care environment?
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for answers with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. Answer ALL PARTS of each question to earn full points. Support your response with the appropriate citation from your...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for answers with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. Answer ALL PARTS of each question to earn full point. Support your response with the appropriate citation from your...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no...
Please write 1 paragraph for each question (total 3 paragraphs) and each paragraph shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for answers with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. Answer ALL PARTS of each question to earn full point. Support your response with the appropriate citation from your...
Please write 1 paragraph for each of the following (total 3 paragraphs) and each answer shall...
Please write 1 paragraph for each of the following (total 3 paragraphs) and each answer shall be no less than 4 sentences and no more than 10 sentences. Points will be deducted for paragraphs with fewer than 4 sentences or extra long posting (0.5 points per each answer). Give only the essential information. Writing long, run-on sentences will be considered as multiple sentences. 1)_ Summarize the growth and development of the Middle Child 2)_ Summarize the growth and development of...
Please explain the question below in in 2-3 paragraphs What is the prime rate and how...
Please explain the question below in in 2-3 paragraphs What is the prime rate and how is it used by financial institutions?