Every year Christmas tree vendors bring tens of thousands of trees from the forests of New England to New York City and Boston. During the last two years, the market has been very competitive; as a result, price has fallen by 10 percent. If the price elasticity of demand was −1.3, vendors would lose revenues altogether as a result of the price decline.

  1. 👍 0
  2. 👎 0
  3. 👁 117
asked by mm
  1. This statement is incorrect, when price decreases and demand is relatively elastic, revenue (and expenditure) will rise.

    1. 👍 0
    2. 👎 0
    posted by Matt

Respond to this Question

First Name

Your Response

Similar Questions

  1. microeconomics

    For each of the following scenarios, decide whether you agree or disagree and explain your answer. a. If the elasticity of demand for cocaine is −.2 and the Drug Enforcement Administration succeeds in reducing supply

    asked by mimi on August 14, 2010
  2. Economics

    Suppose consumers spent $42 million on Christmas trees last year when the average tree cost $30 and this year spend $42 million when the average tree costs $25. Assuming nothing else changed, this data suggests that a. consumers

    asked by Rosa on January 19, 2010
  3. Question??? English

    In The Year of the Perfect Christmas Tree, what Ruthie wants for Christmas is 1. a Christmas feast. 2. a new dress. 3. a doll. 4. a beautifully decorated Christmas tree.

    asked by Leah on December 10, 2008
  4. Child development

    create a lesson plan for Christmas So I was thinking of reading a Christmas story and do an activity. My story well even though its a song "Frosty the Snowman" and for them to just color a snowman and Christmas tree. Objective:

    asked by Reina Bonilla on December 2, 2015
  5. English

    How does the poet use personification to describe trees? (Almost summer sky by Jacqueline Woodson) A. trees upstate think they are better then other trees B. the hundred year old trees act like men C. the top of the tree reach up

    asked by HI on March 12, 2019
  6. Science

    Hemlocks are a common type of tree in the northern forests of the United States. In studying one forest, a forester noticed that mature hemlocks were abundant but there were very few young hemlocks. She wondered why there were so

    asked by Skye on September 19, 2014
  7. Geography

    I have to write a short essay for this topic: Describe the various types of forest vegetation. Make sure to give good examples of location and type of plants. This is what I have: Forest vegetation grows on every continent except

    asked by mysterychicken on August 26, 2009
  8. Math

    Shelley compared the number of oak trees to the number of maple trees as part of a study about hardwood trees in a woodlot he counted nine maple trees to every 5 oak trees later in the year there was a bug problem many trees died

    asked by Anonymous on September 20, 2017
  9. College Level Calculus

    Each orange tree grown in California produces 720 oranges per year if not more than 20 trees are planted per acre. For each additional tree planted per acre, the yield per tree decreases by 15 oranges. How many trees per acre

    asked by Timofey on November 12, 2013
  10. Calc and Vectors

    The owner of an orange grove estimates that 150 orange trees per acre will each yield on average 800 oranges per year. For each additional tree planted per acre the number of oranges produced by each tree decreases by 10 per year.

    asked by Annie on January 22, 2014

More Similar Questions