question 9\n1 pts\nif the revenue of a good does not vary with p, then_______\nits demand is price…

question 9\n1 pts\nif the revenue of a good does not vary with p, then_______\nits demand is price elastic.\nits demand is unit price elastic.\nits demand is price inelastic.\nwe need more information\nquestion 10\n1 pts\nsuppose aaa airlines is suffering from low revenues and profits. if the company wants to increase ticket revenue and the price elasticity of demand is 0.75, the company should:\nincrease the price of tickets.\ndecrease the price of tickets.\nkeep the price unchanged because if the price is either increased or decreased total revenues will fall.\nadvertise. the only option the company has to raise total revenues is to advertise.

question 9\n1 pts\nif the revenue of a good does not vary with p, then_______\nits demand is price elastic.\nits demand is unit price elastic.\nits demand is price inelastic.\nwe need more information\nquestion 10\n1 pts\nsuppose aaa airlines is suffering from low revenues and profits. if the company wants to increase ticket revenue and the price elasticity of demand is 0.75, the company should:\nincrease the price of tickets.\ndecrease the price of tickets.\nkeep the price unchanged because if the price is either increased or decreased total revenues will fall.\nadvertise. the only option the company has to raise total revenues is to advertise.

Answer

Brief Explanations:

  1. For Question 9: When revenue does not vary with price (P), it means that a change in price is exactly offset by a proportional change in quantity demanded in such a way that total revenue (P×Q) remains constant. This is the definition of unit - price elastic demand. In price - elastic demand, a change in price leads to a more than proportional change in quantity demanded and revenue moves in the opposite direction of the price change. In price - inelastic demand, a change in price leads to a less than proportional change in quantity demanded and revenue moves in the same direction as the price change.
  2. For Question 10: The price elasticity of demand (PED) is 0.75, which means demand is price inelastic (since PED < 1). When demand is price inelastic, an increase in price leads to an increase in total revenue because the percentage decrease in quantity demanded is less than the percentage increase in price.

Answer:

Question 9: its demand is unit price elastic. Question 10: Increase the price of tickets.