Question

Virginia State University wants to raise its tuition and increase its revenue. It wants consumers that are
		A.  price sensitive B.  not price sensitive 7. Moe's restaurant wants to sell more burritos by lowering its price. They want consumers that are not price sensitive.T/F 8. If you want to raise your price and increase your revenues, you need to have consumers that are: A.  inelastic B.  elastic C.  unitary elastic 9.There are no close substitutes for gasoline. For this reason, we can infer that the demand for gasoline is likely: A.  elastic B.  inelastic

Answer 1

Solution-

1. Virginia State University wants to raise its tuition and increase its revenue. It wants consumers that are Not Price-Sensitive.

Reason-

Price sensitivity is the degree to which the price of a product affects consumers' purchasing behaviors. In economics, price sensitivity is commonly measured using the price elasticity of demand.

2. Moe's restaurant wants to sell more burritos by lowering its price. They want consumers that are not price sensitive.

This statement is False.

Reason-

Not Price sensitivity is the degree to which the price of a product unaffects consumers' purchasing behaviors. In economics. Hence this statement is False.

3. If you want to raise your price and increase your revenues, you need to have consumers that are: A.  inelastic.

Reason-

Inelastic is an economic term used to describe the situation in which the quantity demanded or supplied of a good or service is unaffected when the price of that good or service changes.

4.There are no close substitutes for gasoline. For this reason, we can infer that the demand for gasoline is likely: B. Elastic.

Reason-

If a good has no close substitutes, its demand is likely to be somewhat less price elastic.

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