1) Calculate total-revenue data from the demand schedule. Graph total revenue below your demand curve. Generalize about the relationship between price elasticity and total revenue.
Product price Quantity Demanded
Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elasticity of demand for each of the four possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity? Explain in a nontechnical way why demand is elastic in the Northwest segment of the demand curve and inelastic in the southeast segment.© BrainMass Inc. brainmass.com March 4, 2021, 5:45 pm ad1c9bdddf
2) See the attached graph. Elasticities, top to bottom: 3; 1.4; .714; .333. Slope does not measure elasticity. This demand curve has a constant slope of -1 (= -1/1), but elasticity declines as we move down the curve. When the initial price is high ...
Calculate total-revenue data from the demand schedule.