contestada

Nataraj​ (2007) finds that a 100​% increase in the price of water for heavy users in Santa Cruz caused the quantity of water they demanded to fall by an average of 20​%. ​ (Before the​ increase, heavy users initially paid ​$1.55 per​ unit, but afterwards they paid ​$3.10 per​ unit.) In percentage​ terms, how much did their water expenditure​ (price times ​quantity)long dashwhich is the water​ company's revenuelong dash​change? With the price​ increase, the​ company's revenue changed by .31 nothing​%. ​(Enter your answer rounded to two decimal​ places.)

Respuesta :

TomShelby

Answer:

The sales revenue will increase by 60%

Explanation:

Let's work this as the amount of sales were 1 units:

Price when to 3.10 dollars from 1.55

And quantity from 1 untis to "0.8 unit"

So revenue before price changes: 1.55 x 1 = 1.55

Revenue after price changes:     3.10 x 0.8 = 2.48

The percentaje in sales revenue will be.

new price sales/ old price sales - 1 = 2.48 / 1.55 -1 = 0.6

We can conclude the sales revenue will increase by 60%