Refer to the table below oints on Demand Curve Price er ounce S0.40 uantity Dema

Question

Refer to the table below oints on Demand Curve Price er ounce S0.40 uantity Demanded ounces per show 50.15 50.10 20 25 (a) Compute the price elasticity between point C to point D and point H to point Instructions: Enter your responses rounded to two decimal places. Do not include a minus sign. Use the mid-point formula C to D- H to l (b) Compute the total revenue at point C, point D, point H, and point I Instructions: Enter your responses rounded to two decimal places Point C -$ Point D-$ Point H$ Point I # $

Explanation / Answer

Price elasticity of demand = (Q2 - Q1)/(P2 - P1) x (P2 + P1)/(Q2 + Q1)

a) C to D:

PE = 2/0.05 x 0.75/10 = 3

H to I:

PE = 5/0.05 x 0.25/45 = 0.56

b)

Revenue = P x Q

Point C = 0.4 x 4 = $ 1.6

Point D = 0.35 x 6 = $ 2.1

Point E = 0.15 x 20 = $ 3

Point F = 0.1 x 25 = $ 2.5

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.