Marginal revenue functions

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Q1. Assume demand take the form Q = 36P-1.

a. Show that the price elasticity of demand is constant and equal to -1.

b. Write the total and marginal revenue functions

Q2. Given a scenario where government expenditures increase by $400, and taxes were decreased by $400, yet both caused the GDP to rise by more than $400. This may have occurred explain why?

Reference no: EM138592

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