question archive 1)A firm facing a downward-sloping demand curve sells 50 units of output at $10 each
Subject:EconomicsPrice:2.88 Bought3
1)A firm facing a downward-sloping demand curve sells 50 units of output at $10 each. The firm's average revenue is:
a. $10.
b. less than $10 but more than zero.
c. $500.
d. zero.
e.more than $10 but less than $500.
2)A producer knows that the price elasticity for his product is -0.5. He wants to increase quantity demanded by 30 percent. By what percentage does he need to change the price?
a. - 6 percent
b. 10 percent
c. - 9.5 percent
d. - 60 percent
e. 6 percent
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