Economics
posted by Steven Davis .
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 consumption is down 3 percent." Given this information, compute the price elasticity of demand for ice cream. Will the revenue received by ice cream suppliers have increased or decreased following the price increase? briefly explain.
Respond to this Question
Similar Questions

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 … 
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 … 
Algebra 2
an ice cream store has 31 flavors of ice cream and 10 toppings. A regular sundae has one flavor of ice cream, one topping, and comes with or without whipped cream. How many different ice cream sundaes can be ordered? 
Economics: Demand and Supply
Suppose the market for ice cream is deregulated. That is, ice cream are free to adjust based on the forces of demand and supply. If a shortage exists in the ice cream market, then the current price must be _______ than the equilibrium … 
economics
entrepreneur edward is planning to open a business selling ice cream. he knows that the price of ice cream is determined by the forces of supply and demand but wants a report outlining five specific events that can be expected to cause … 
Algebra
The accompanying bar graph shows the milk fat percentages in three dairy products. A=whole milk @4%. B= milk for cream cheese @8%, and C= cream @30%. How many pounds each of whole milk and cream should be mixed to form 200 lb of milk … 
Algebra
The bar graph which is 4% whole mil, 8% milk for cream and 30% cream shows the milk fat percentages in three dairy product s. How many pounds each of whole milk and cream should be mixed to form 200 lb of milk for cream cheese? 
math
To make 4 1/2 gallons of ice cream, it takes 6 3/10 gallons of milk. How many gallons of milk does it take to make one gallon of ice cream? 
Social Studies
1. Why do businesses seek a equilibrium price? 
Social studies
1. Why do businesses seek an equilibrium price?