Question: 3 - From the following data about the demand for dishwashers, calculate the elasticity of demand from point A to B, from point C to

3 - From the following data about the demand for dishwashers, calculate the elasticity of demand from point A to B, from point C to D and from point E to point F. Classify the elasticity as elastic, inelastic or unitary elastic. Also calculate the total revenue of each point. What happens to total revenue as you approach unitary elasticity? If cost were not an issue what price would you choose for your selling price?

Point Price In Dollars Quantity Demanded Total Revenue Elasticity
A 180 5600
B 200 5200
C 220 4800 $1,056,000
D 240 4400
E 260 4000 -1.42
F 280 3600

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