1. According to the midpoint method, the price elasticity of demand between points A and B on...
Question:
1. According to the midpoint method, the price elasticity of demand between points A and B on the initial graph is approximately (0, 0.33, 3, 7.5).
2. Suppose the price of bippitybops is currently $50 per bippitybop, shown as point B on the initial graph. Because the price elasticity of demand between points A and B is(elastic, inelastic, unit elastic), a $25-per-bippitybop increase in price will lead to (a decrease, an increase, no change) in total revenue per day.
3. In general, in order for a price decrease to casue a total decrease in total revenue, demand must be (elastic, inelastic, unit elastic).
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073212227
8th Edition
Authors: Ferdinand Beer, E. Russell Johnston, Jr., Elliot Eisenberg, William Clausen, David Mazurek, Phillip Cornwell