Question: The sugar demand plan is: Price (dollars per kilogram) Quantity demanded (million kilograms per day) 5 25 10 20 15 15 20 10 25 5

The sugar demand plan is: Price (dollars per kilogram) Quantity demanded (million kilograms per day) 5 25 10 20 15 15 20 10 25 5

a) What happens to total income if the price of sugar rises from $ 5 to $ 15 per kilogram?

b) What happens to total income if the price rises from $ 15 to $ 25 per kilogram?

c) At what price is total revenue at its maximum plinth? Use the total income test to answer this question.

d) At an average price of $ 20 per kilogram, is the demand for sugar elastic or inelastic? Use the total income test to answer this question.

e) At a price of $ 10 per kilogram, is the demand for sugar elastic or inelastic? Use the total income test to answer this question.

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