Mr. Porter sells 10 bottles of champagne per week at a price of $50 per bottle. He can sell 11 bottles per week if he lowers the

Question

g100num [7]

2 years ago

8

Mr. Porter sells 10 bottles of champagne per week at a price of $50 per bottle. He can sell 11 bottles per week if he lowers the

price to $45 per bottle. The quantity and the price effects on total revenue would be, respectively:

Business

1 answer:

sergey [27] · Answer 1 · 2022-10-12T20:46:09+03:00

Answer:

See below.

Explanation:

Solve for bottles at $50:

10 × 50

$500 per week

Solve for bottles at $45:

11 × 45

$495

Mr. Porter would make more money by sticking with selling 10 bottles a week at $50 each. This is because the latter requires him to sell one extra bottle and he will still lose $5.