microeconomics

posted by .

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 .....

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. microeconomics

    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 …
  2. Programming

    How do I declare how many boxes there are and how much per box with this information..... Write an IceCreamStation class in Java. An ice cream station sells ice cream cones, but needs to buy ice cream (by the pint) and cones (by the …
  3. algebra 1

    AN ICE CREAM SHOP OFFERS 8 FLAVORS OF ICE CREAM AND 5 CHOICES OF TOPPINGS. YOU CAN HAVE THE ICE CREAM IN A CUP, A PLAIN CONE, OR A SUGAR CONE. HOW MANY DIFFERENT COMBINATIONS OF A SINGLE FLAVOR, A SINGLE TOPPING, AND A CUP OR ONE OF …
  4. Economics

    A newspaper story on the effect of higher milk prices on the market for ice cream contained the following: "as a result (of the increase in milk prices), retail prices for ice cream are up 4 percent from last year... and ice cream …
  5. Probability

    The local ice cream stand offers three flavors of soft-serve ice cream: vanilla, chocolate, and strawberry: two types of cone: sugar and wafer: and three toppings: sprinkles, nuts, and cookie crumbs. If Dawn does not order vanilla …
  6. Geometry

    I'm not asking for the answer (I hate when people do that) I'd just like to know how to go about this so that I may understand. Any help is much appreciated. "A sphere of ice cream is placed onto your ice cream cone. Both have a diameter …
  7. math

    An ice cream shop is changing the size of their ice cream cone. The volume of a cone is . How much will the ice cream cone hold if the radius is 4 inches and the height is 3 inches?
  8. geometry

    An ice cream server fills a cone, which is 15.7 cm high and 7.2 cm across, with ice cream. She then tops the cone with a nicely rounded half-scoop. On top of this she puts the second scoop. To the nearest cubic centimeter, how much …
  9. Macroeconomics

    What happens to the equilibrium price and quantity of ice cream in response to each of the following?
  10. Math

    an ice cream cone contains one spherical scoop of ice cream,the diameter of the scoop of ice cream is the same as the diameter of the cone. If the ice cream melts, will the cone overflow?

More Similar Questions