Question

Mark is selling gourmet apples at a price of ​$3 per pound. ​ currently, he sells 150 pounds of apples per week. this​ week, mark raises his price to ​$5​, and his sales of apples fall to 100 lbs. ​mark's initial revenue from apple sales was ​$ nothing. ​mark's new revenue from apple sales is ​$ nothing. since​ mark's revenue increased when the price of apples​ rose, the demand for​ mark's gourmet apples must be ▼ elastic unitary inelastic .

Answer 1

Answer:

Inelastic

Explanation:

In this example, we learn that Mark's revenue increased when the price of the apples rose. This means that the demand for Mark's gourmet apples must be inelastic. The elasticity of demand refers to the degree to which demand responds to a change in another economic factor. Elastic demand exists when the changes in demand follow the changes in price. Inelastic demand occurs when consumers do not significantly change their habits, regardless of changes in price.

Answer 2

Mark's initial revenue was $450 (150lb)($3) and his new revenue was $500 (100lb)($5). Since Mark's revenue increased when the price if apples rose, the demand for Mark's gourmet applies must be inelastic. Elastic, because even though there was a change in price, the change in price wasn't substantial.