{"id":20478,"date":"2025-06-14T13:35:50","date_gmt":"2025-06-14T13:35:50","guid":{"rendered":"https:\/\/gaviki.com\/blog\/?p=20478"},"modified":"2025-06-14T13:35:51","modified_gmt":"2025-06-14T13:35:51","slug":"tian-sells-his-oil-paintings-on-kijiji","status":"publish","type":"post","link":"https:\/\/gaviki.com\/blog\/tian-sells-his-oil-paintings-on-kijiji\/","title":{"rendered":"Tian sells his oil paintings on Kijiji"},"content":{"rendered":"\n<p>Tian sells his oil paintings on Kijiji. Tian raises the price he charges for his paintings and finds his revenue increases. In other words, Select one: A. demand for his paintings is inelastic. B. Tian found a way to produce the paintings at lower cost. C. demand for his paintings is elastic. D. the quantity of paintings bought increases. E. the demand for Tian&#8217;s paintings shifted left.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>The correct answer and explanation is:<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Correct Answer: A. demand for his paintings is inelastic.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation:<\/h3>\n\n\n\n<p>In economics, <strong>price elasticity of demand<\/strong> measures how sensitive the quantity demanded of a good is to a change in its price. There are two main types:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Elastic demand<\/strong>: If the price increases, the total revenue decreases because people buy significantly less of the product.<\/li>\n\n\n\n<li><strong>Inelastic demand<\/strong>: If the price increases, the total revenue increases because people still buy almost the same amount despite the price rise.<\/li>\n<\/ul>\n\n\n\n<p>In this scenario, <strong>Tian raises the price of his paintings and his revenue increases<\/strong>. This implies that customers continue to buy his paintings even though they are more expensive. Therefore, the quantity demanded did <strong>not<\/strong> decrease significantly. This is the hallmark of <strong>inelastic demand<\/strong>.<\/p>\n\n\n\n<p>When demand is <strong>inelastic<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The percentage drop in quantity demanded is <strong>less than<\/strong> the percentage increase in price.<\/li>\n\n\n\n<li>As a result, <strong>total revenue (price \u00d7 quantity)<\/strong> rises.<\/li>\n<\/ul>\n\n\n\n<p>This is common for unique or highly valued goods\u2014like original oil paintings\u2014which may not have close substitutes. People who value Tian\u2019s artistic style may still buy his work even at a higher price, indicating inelastic behavior.<\/p>\n\n\n\n<p>Let\u2019s review why the other options are incorrect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>B. Tian found a way to produce the paintings at lower cost<\/strong>: This is about supply or cost, not demand and revenue.<\/li>\n\n\n\n<li><strong>C. demand is elastic<\/strong>: If this were true, raising prices would have <strong>reduced<\/strong> revenue.<\/li>\n\n\n\n<li><strong>D. quantity of paintings bought increases<\/strong>: Normally, raising prices <strong>reduces<\/strong> quantity demanded, unless there&#8217;s a demand shift or inelasticity.<\/li>\n\n\n\n<li><strong>E. demand shifted left<\/strong>: That would indicate a <strong>decrease<\/strong> in demand, which would lower revenue, not increase it.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion:<\/h3>\n\n\n\n<p>Since a price increase led to higher revenue, <strong>the demand for Tian\u2019s paintings is inelastic<\/strong>. This is why option <strong>A<\/strong> is correct.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tian sells his oil paintings on Kijiji. Tian raises the price he charges for his paintings and finds his revenue increases. In other words, Select one: A. demand for his paintings is inelastic. B. Tian found a way to produce the paintings at lower cost. C. demand for his paintings is elastic. D. the quantity [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20478","post","type-post","status-publish","format-standard","hentry","category-quiz-questions"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/20478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=20478"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/20478\/revisions"}],"predecessor-version":[{"id":20479,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/20478\/revisions\/20479"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=20478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=20478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=20478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}