Elasticity

Based on demand schedules below:

1)

Complete table below for both product A and B and based on those tables, which product that is more likely to be elastic or inelastic demand?

2)

If you are marketing manager of both products and market price for both products are $20. Discuss what is the best pricing strategy to increase total revenue of the products A and B? Ensure that you compare and comment on how change in market price affects total revenue for both products.

Task 2 Based on demand schedules below: Product A Product B Price Quantity Price Quantity ($) demanded demanded (units) ($) (units) 5 1150 2 100 10 570 5 90 15 370 10 80 20 260 20 70 25 170 30 60 30 110 40 50 35 70 60 35 40 40 80 27A. Complete table below for both product A and B and based on those tables, which product that is more likely to be elastic or inelastic demand? B. If you are marketing manager of both products and market price for both products are $20. Discuss what is the best pricing strategy to increase total revenue of the products A and B? Ensure that you compare and comment on how change in market price affects total revenue for both products. change in price elasticity demand Quantity Total (P2 - P1) change in quantity (Q2 - Q1) change in quantity Price demanded Revenue P2 + P1) x 100 2 Q2 + Q1 ) change in price x 100 2