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if price increases by 20 percent how much will unit sales decline for Coffee Shoes and Airline travel Will total revenue increase or decrease for Coffee

According to Table 4.1, if price increases by 20 percent, how much will unit sales decline for (a) Coffee, (b) Shoes, and (c) Airline travel? Will total revenue increase or decrease for (d) Coffee, (e) Shoes, (f) Airline travel? TABLE 4.1 Elasticity Estimates Degree of Elasticity ___________________ Estimate Relatively elastic (E > 1) ................................................... Airline travel, long run .............................. 2.4 Fresh fish ............................................. 2.2 New cars, short run ........................... 1.2 - 1.5 Unitary elastic (E = 1) ................................................... Private education ................................... 1.1 Radios and televisions ............................. 1.2 Shoes ................................................. 0.9 Relatively Inelastic (E < 1) ................................................... Cigarettes ........................................... 0.4 Coffee ............................................... 0.3 Gasoline, short run ................................. 0.2 Long-distance telephone calls .................... 0.1

Apr 06 2020 View more View Less

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