Calculate the elasticity of demand

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Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.

Price of crackers   Quantity Demanded (per month)

$3                        80

$2.5                    120

$2                       160

$1.5                    200

$1                       240

$1.00 - $1.50: ___________________________________

$1.50 - $2.00: ___________________________________

$2.00 - $2.50: ___________________________________

$2.50 - $3.00: ___________________________________

If the price of graham crackers is $2.50 should firms raise or lower their prices if they want to increase revenue? Explain this in terms of elasticity.

Reference no: EM13178941

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