The schedule below shows the number of packs of bagels bought in Davis, California, each day at a variety of prices
Price of bagels ($/pack)Number of packs purchased per day
6………………………………… 0
5…………………………………3,000
4…………………………………6,000
3…………………………………9,000
2…………………………………12,000
I…………………………………15,000
0…………………………………18,000
a. Graph the daily demand curve for packs of bagels in Davis.
b. Calculate the price elasticity of demand at the point on the demand curve at which the price of bagels is $3 per pack.
c. If all bagel shops increased the price of bagels from $3 per pack to $4 per pack, what would happen to total revenues?
d. Calculate the price elasticity of demand at a point on the demand curve where the price of bagels is $2 per pack.
e. If bagel shops increased the price of bagels from $2 per pack to $3 per pack, what would happen to total revenues?