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King Hardware sold 7 pounds of bolts yesterday at a price of $5.00 per pound. This point is represented by the black plus symbol on the diag below, which plots the price of bolts (measured in dollars per pound) and the quantity sold (measured in pounds).

King Hardware sold 7 pounds of bolts yesterday at a price of $5.00 per pound. This point is represented by the black plus symbol on the diag below, which plots the price of bolts (measured in dollars per pound) and the quantity sold (measured in pounds).

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 24RQ: What is a production technology?
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King Hardware sold 7 pounds of bolts yesterday at a price of $5.00 per pound. This point is represented by the black plus symbol on the diagra below, which plots the price of bolts (measured in dollars per pound) and the quantity sold (measured in pounds). PRICE (Dollars per pound) 10 9 8 2 1 0 0 1 There are 2 3 4 5 6 BOLTS (Pounds) + 7 + + + 8 9 10 Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one sm square is therefore small squares in the purple shaded rectangle. On this graph, the area of the purple rectangle corresponds to: King Hardware's revenue from selling bolts, measured in dollars O The price of the bolts, measured in dollars per pound New Price/Quantity None of these-the area has no meaning The number of bolts that King Hardware sold, measured in pounds (?) Now suppose King Hardware raises its price to $6.00 per pound of bolts. As a result, it now sells 5 pounds of bolts. Use the blue rectangle to draw the area that corresponds to the new price and quantity. Did raising the price of bolts increase King Hardware's revenue?
Transcribed Image Text:King Hardware sold 7 pounds of bolts yesterday at a price of $5.00 per pound. This point is represented by the black plus symbol on the diagra below, which plots the price of bolts (measured in dollars per pound) and the quantity sold (measured in pounds). PRICE (Dollars per pound) 10 9 8 2 1 0 0 1 There are 2 3 4 5 6 BOLTS (Pounds) + 7 + + + 8 9 10 Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one sm square is therefore small squares in the purple shaded rectangle. On this graph, the area of the purple rectangle corresponds to: King Hardware's revenue from selling bolts, measured in dollars O The price of the bolts, measured in dollars per pound New Price/Quantity None of these-the area has no meaning The number of bolts that King Hardware sold, measured in pounds (?) Now suppose King Hardware raises its price to $6.00 per pound of bolts. As a result, it now sells 5 pounds of bolts. Use the blue rectangle to draw the area that corresponds to the new price and quantity. Did raising the price of bolts increase King Hardware's revenue?
Yes No
Transcribed Image Text:Yes No
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