Reference no: EM131391913
P 0 1 2 3 4 5 6
Qd 60 50 40 30 20 10 0
A. Graph the data above (5)
b. Calculate the elasticity of demand, using the midpoint formula, as price drops from $6 to 5, then from 5 to 4, 4 to 3, 3 to 2, 2 to 1, and, 1 to 0. Show all work.
c. For each calculation in part c, state: if the price elastic, unitary or inelastic; what portion of the demand curve it is located on (upper, middle or lower); and what is the relationship between the % change in Qd and the % change in P for each calculation.
AA. From the data in question #4, Calculate total revenue at each and every price for this demand curve. Then, graph the total revenue curve.
Now, starting with the price of $6 and working down the demand curve $1 at a time, explain what is happening to the total revenue at each price and why. You need to relate the TR back to the Ed formula and explain.
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