Reference no: EM13374775

Using the chart below, complete 1 and 2 below.

Price		Quantity
per unit		demanded
$10.00		25
9.50		30
9.00		35
8.50		40
8.00		45
7.50		50
7.00		55
6.50		60
6.00		65
5.50		70
5.00		75

1. Figure the elasticity of demand for each of the following showing all calculations:

1. $10.00 to $ 9.50                                   b. $ 8.50 to $ 8.00

        c. .  $ 6.50 to $ 6.00                                   d.   $ 6.00 to $ 5.50

        e.   $5.50 to $5.00

        2. For each of the above write beside your answer whether the demand is elastic, inelastic, or unit elastic.

Problem 1

Complete the following table assuming perfect competition.

Q	TR	MR	MC	TVC	TFC	AFC	AVC	TC	Profit
0								15
1								55
2								85
3								105
4								115
5								140
6								170
7								211
8								271
Price=30

At what level of output is profit maximized?