The graph below shows the curve for Total Revenue (i.e Price x Quantity sold). Let us...
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The graph below shows the curve for Total Revenue (i.e Price x Quantity sold). Let us assume that all the quantity sold corresponds to the quantity demanded. Calculate the elasticity of the demand curve corresponding to the point where total revenue is maximum (on this graph total revenue is maximum when quantity per period is 100). (Note that you are also given the demand equation for this graph P-100-Q/2, the question can be solved without using this information). Total Revenue, Dollars per period 6000 5000 4000 3000 2000 1000 0 0 Total Revenue Curve for P=100-Q/2 50 100 150 200 Quantity per period 250 Series 1 The graph below shows the curve for Total Revenue (i.e Price x Quantity sold). Let us assume that all the quantity sold corresponds to the quantity demanded. Calculate the elasticity of the demand curve corresponding to the point where total revenue is maximum (on this graph total revenue is maximum when quantity per period is 100). (Note that you are also given the demand equation for this graph P-100-Q/2, the question can be solved without using this information). Total Revenue, Dollars per period 6000 5000 4000 3000 2000 1000 0 0 Total Revenue Curve for P=100-Q/2 50 100 150 200 Quantity per period 250 Series 1
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Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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