Question: 1. In part a) graph the demand schedule shown below for Energy Bars facing an individual firm. Then using the mid-point formula, complete the table

1. In part a) graph the demand schedule shown below for Energy Bars facing an individual firm. Then using the mid-point formula, complete the table by calculating Ed to determine the price elasticity of demand for each of the six possible $1.00 price changes (3 decimal points). Indicate if demand is inelastic, unitary (unit) or elastic in the table and on the graph. (7 Marks for the table)

Price per Energy Bar Quantity Demanded (1,000s) Ed Elasticity

$1.20

7.5

$2.20

6.5

$3.20

5.5

$4.20

4.5

$5.20

3.5

$6.20

2.5
$7.20 1.5

Graph the Demand curve here (3 Marks)

b. Show your calculations for Edover the price change from $6.20 to $5.20. (3 Marks)

c.At what price level(s) is will this firm maximize Total Revenue? Explain your answer. (3 Marks)

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