Question: 6. Answer the questions below using linear demand curve shown below for Good X. Hint: don't forget the importance of the marginal revenue curve. Pca


6. Answer the questions below using linear demand curve shown below for Good X. Hint: don't forget the importance of the marginal revenue curve. Pca ED 16 3 2B d O A. At what quantity will demand be unitary elastic? ls total revenue increasing, decreasing, or maximized at that quantity? How do you know (relate back to marginal revenue)? B. At a quantity of 28, demand is (elastic, unit elastic, or inelastic}. C. If price drops from $18 to $16, will total revenue increase or decrease? Why
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
