Answer the following questions based on the accompanying graph.
a. What is the change in revenues associated with the price effect for this firm when the price decreases from $50 to $30?
b. What is the change in revenues associated with the output effect for this firm when the price decreases from $50 to $30?
c. Would the firm gain revenue if it lowered the price from $50 to $30? Explain.

Question

Answer the following questions based on the accompanying graph.  
a. What is the change in revenues associated with the price effect for this firm when the price decreases from $50 to $30?
b. What is the change in revenues associated with the output effect for this firm when the price decreases from $50 to $30?
c. Would the firm gain revenue if it lowered the price from $50 to $30? Explain.

Quizplus · Accepted Answer

The Answer of Answer the following questions based on the accompanying graph.  
a. What is the change in revenues associated with the price effect for this firm when the price decreases from $50 to $30?
b. What is the change in revenues associated with the output effect for this firm when the price decreases from $50 to $30?
c. Would the firm gain revenue if it lowered the price from $50 to $30? Explain.

Answer the Following Questions Based on the Accompanying Graph