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Calculating the price elasticity of demand

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The demand schedule for the product produced by a monopolist is given in the following table.

Quantity demanded Price Total revenue Marginal revenue Price elasticity
0 $1000
1 600
2 500
3 400

(a) Complete the table by computing total revenue, marginal revenue, and the price elasticity of demand (use midpoints formula). Use the formula on midpoint formula.

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Solution Summary

This solution describes the steps to calculate total revenue, marginal revenue and price elasticity of demand.

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Please refer attached file for complete solution. Expressions typed with the help of equation writer are missing here.

Quantity demanded Price Total Revenue ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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