Question:

So how would this solution be represented in the same way as the pizza slices were in a chart like manner with each QTY being shown with the corresponding Prices to show the Optimal Price with the quantities both less or more. ???

Notes:

For slices of pizza one slice is $7 whereas three slices is $5 which is the optimal price.

Optimal Price: is QTY:3 @$5 with Profit being 10.50 and Cost is $1.50

Price ($) Quantity Revenue ($) MR ($) MC ($) Profit ($)

7 1 7 7 1.50 5.50

6 2 12 5 1.50 9.00

5 3 15 3 1.50 10.50

4 4 16 1 1.50 10.00

3 5 15 1 1.50 7.50

2 6 12 3 1.50 3.00

1 7 7 5 1.50 3.50

The price of iPhone went up from $500 to $1000, their quantity demanded fell from 2 million to 1.5 million. Calculate the price elasticity of demand for iPhone. Are iPhone elastic or inelastic based the calculations? And how would you show your work as a chart ?

Solution Notes:

The price elasticity of demand for iPhone = -0.43.

The iPhone demand is price inelastic or have an inelastic demand. This is because the coefficient of the price elasticity of demand for iPhone which I calculated above is less than 1 in absolute terms.

Explanation Notes:

The price elasticity of demand for IPhone is given by the formula;

The price elasticity of demand for iPhone = (dQ/dP)*P/Q, where dQ =1.5million - 2million = -0.5million, P=$1000-$500=$500, P=($1000+$500)/2=$750 and Q=( 1.5million + 2million)/2 = 1.75million.

The price elasticity of demand for iPhone = (-0.5/$500)* $750/1.75

The price elasticity of demand for iPhone = -0.43

The iPhone's demand is price inelastic or have an inelastic demand. This is because the ABSOLUTE coefficient of the price elasticity of demand for iPhone which calculated above is less than 1 in absolute terms.

The price of iPhone went up from $500 to $1000, their quantity demanded fell from 2million to 1.5million.Calculate the price elasticity of demand for iPhone.

Are iPhone elastic or inelastic based on your calculation. How would the Question below be answered to reflect the chart like the example for the pizza slices ?

Question:

So how would this be represented in the same way as the pizza slices were in a chart like manner with each QTY being shown with the corresponding Prices to show the Optimal Price with the quantities both less or more. ???