Q32Let's assume we are referring to the Canadian market for Random Access Memory (RAM) storage. If the price of RAM increases:Multiple Choice total revenue for RAM producers will decrease if demand for RAM is price inelastic. the consumer surplus for Canadian consumer will decrease. consumers will buy more because RAM is an inferior good. the consumer surplus of Canadian will increase. total revenue for RAM producers will increase if demand for RAM is price elastic.

If price increases then the revenue increases if the demand is inelastic and revenue decreases if…

Answered: Let's assume we are referring to the…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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Q32

Let's assume we are referring to the Canadian market for Random Access Memory (RAM) storage. If the price of RAM increases:

Multiple Choice

total revenue for RAM producers will decrease if demand for RAM is price inelastic.
the consumer surplus for Canadian consumer will decrease.
consumers will buy more because RAM is an inferior good.
the consumer surplus of Canadian will increase.
total revenue for RAM producers will increase if demand for RAM is price elastic.

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