Thursday
November 27, 2014

Homework Help: microeconomics

Posted by Kim on Wednesday, February 21, 2007 at 10:00am.

Just when you really, really want an ice cream cone, the price is rising. But it isn't summertime gouging by manfacturers. The cost of milk fat, the principal ingredient in ice cream, jumped 71% druing the past 6 months to 2.22 at the end of June. As a result, retail prices of ice cream are up 4% from last year, manfacturers say, triggering a 3% drop in comsumption. From last year to this year, what happened to the total revenue from ice cream. Explain

Total revenue is P*Q. Let P and Q be initial price and quantity. So, new total revenue will be (1.04)*P * (.97*Q) So, the change in total revenue is .....

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

microeconomics - Just when you really, really want an ice cream cone, the price ...
Economics - A newspaper story on the effect of higher milk prices on the market ...
Geometry - I'm not asking for the answer (I hate when people do that) I'd just ...
Macroeconomics - What happens to the equilibrium price and quantity of ice cream...
Algebra - The bar graph which is 4% whole mil, 8% milk for cream and 30% cream ...
Programming - How do I declare how many boxes there are and how much per box ...
math - An ice cream shop is changing the size of their ice cream cone. The ...
Algebra - The accompanying bar graph shows the milk fat percentages in three ...
algebra 1 - AN ICE CREAM SHOP OFFERS 8 FLAVORS OF ICE CREAM AND 5 CHOICES OF ...
Health - Based upon the government’s research, they recommend that we do what ...

Search
Members