Question: 3.(12 points) Use the demand schedule below to compute (a) the price elasticity of demand using the mid-point formula and (b) the total revenue at

3.(12 points) Use the demand schedule below to compute (a) the price elasticity of demand using the mid-point

formula and (b) the total revenue at each point.Calculate the price elasticity of demand and total revenue.

Plot the elastic and inelastic regions on the demand diagram.Show your work for full credit.

Demand Schedule 3

PriceQuantity Demanded

A$2.8012

B2.4018

C2.0024

D1.6032

E1.2040

a. Graph the demand curve.

b. Complete the following table.

Price ElasticityTotal Revenue

Point A to B At pointA

Point B to CB

Point C to DC

Point D to ED

E

c. Indicate the Elastic and Inelastic regions of the demand curve on the graph from Part a. above.

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