Ask Question
BusinessBusiness
12 April, 08:30

Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama. To increase revenue, fishing lure manufacturers should: a. lower prices in each state. b. raise prices in each state. c. lower prices in South Carolina and raise prices in Alabama. d. leave prices unchanged in South Carolina and raise prices in Alabama.

+4
Answers (1)
  1. 12 April, 09:49
    0
    A

    Explanation:

    In this question, we are asked what should be done to increase revenue, given the price elasticity of demand for fishing in the two places.

    We answer the question as follows:

    The value of 1.5 shows that the price elasticity of demand for fishing in South Carolina is elastic. This means a decrease in price will lead to revenue increase

    Also, If price elasticity of demand is 0.63, then an increase in the price will lead to revenue decrease in Alabama.

    Hence it can be said that if the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama.

    To increase revenue, fishing lure manufacturers should lower prices in South Carolina and raise prices in Alabama.

    Hence option a is the correct Option
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama. To increase revenue, fishing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A public franchise A. is a corporation that is owned by stockholders. B. is an unregulated monopoly necessary for the public good. C. results from ownership of a key raw material. D.
Answers (1)
According to Lucas and Sargent, workers and firms have rational expectations, and therefore if the Fed pursues a contractionarya contractionary monetary policy:
Answers (1)
In computing depreciation, salvage value isa. the fair market value of a plant asset on the date of acquisition. b. subtracted from accumulated depreciation to determine the plant asset'sdepreciable cost. c.
Answers (1)
Adjusting the accounts is the process of
Answers (1)
When a firm purchases supplies for its business: the supplies account should always be debited. the supplies expense account should always be debited. either the supplies account or the supplies expense account should be credited.
Answers (1)
New Questions in Business
In year 1 the CPI is 140, and in year 2 the CPI is 154. From year 1 to year 2, Maria's salary rises from $43,000 to $48,000, and Daisy's salary rises from $65,000 to $70,000. Who is "more than keeping up with inflation"?
Answers (2)
Under a perpetual inventory system: a) purchases on account are debited to Purchases. b) purchase returns are debited to Purchase Returns and Allowances. c) freight costs are debited to Freight-Out. d) purchases on account are debited to Inventory.
Answers (1)
Prepare various types of budgets
Answers (1)
On October 1, 20X3, Green Corporation paid $450,000 for all of Yellow Company's outstanding common stock.
Answers (1)
What is the lowest level of the permanent party organization in texas?
Answers (1)
Home » Business » Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama. To increase revenue, fishing lure manufacturers should: a. lower prices in each state. b. raise prices in each state. c.
Sign Up Forgot Password?