Dr Franke, a Perpetual Critic of Economics, Notes That a Recent

Multiple Choice

Dr. Franke, a perpetual critic of economics, notes that a recent consultant to his medical practice had advised him to raise the prices he charged in order to raise his business revenues. At a university fund raising event he commented to the Chancellor regarding "how ludicrous"some of his faculty members were in giving advice that would drive customers away. He advised the Chancellor that more "practical, experienced faculty" such as hired by the local Technical College were needed. If demand for Dr. Franke's services is inelastic

A) customers would increase and revenues drop
B) customers would increase and revenues expand
C) customers would decrease and revenues drop
D) customers would decrease and revenues expand
E) only cross-price elasticity is related to revenues