(Step-by-Step) Barker Cement Company is considering lowering the price on an 80 lb. bag of cement from $3 to $2. Presently, Barker sells 10,000 bags of cement per
Question: Barker Cement Company is considering lowering the price on an 80 lb. bag of cement from $3 to $2. Presently, Barker sells 10,000 bags of cement per week, and its market analysts believe the price elasticity of demand to be -2 over this price range.
- If Barker Cement Company lowers the price, will its total revenue increase, decrease, or remain unchanged? Why?
- What will be the new level of quantity demanded? Of total revenue?
Deliverable: Word Document 
![[Solved] (a) Complete the table below by](/images/solutions/MC-solution-library-49867.jpg "[Solved] (a) Complete the table below by finding total revenue")
[Solved] (a) Complete the table below by finding total revenue
![[See Solution] If P = 120 -](/images/solutions/MC-solution-library-49868.jpg "[See Solution] If P = 120 - 1.5Q is the equation for the demand curve,")
[See Solution] If P = 120 - 1.5Q is the equation for the demand curve,
![[Solution] Below is a mathematical demand function](/images/solutions/MC-solution-library-49869.jpg "[Solution] Below is a mathematical demand function for new Cadillac’s")
[Solution] Below is a mathematical demand function for new Cadillac’s
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