Dusty Rags, Inc

Multiple Choice

Dusty Rags, Inc.provides janitorial services to retail stores.Dusty had beencharging $10 per hour and selling 400 hours of service per week at that rate.When he raised his price to $15 per hour, his customers cut back to 300weekly hours of service.Which of the following is true?

A) Revenue went from $4,000 per week to $4,500 per week, indicating that the demand curve for his services
Must have shifted to the right.
B) Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must
Be elastic.
C) Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must
Be inelastic.
D) Revenue went from $400 to $300 per week, indicating that demand must be elastic.
E) Revenue went from $10 to $15 per week, indicating that demand must be inelastic.