Explore BrainMass
Share

Calculating total revenue and price elasticity of demand

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Table. Price Elasticity of Demand and Revenue

Fine 0 10 20 30 40 50
Number of Tickets 0 8 7 6 4 2
Total Revenue

a.Plot the demand curve i.e., Qd = F (p)
b.Use the data in Table IV to find the total revenue for each fine.
SHOW the formula for total revenue.
c.Draw a graph of the relationship between Fines and Revenues [R = f(F)].
d.What does the graph show about the inelastic and elastic portions of the demand curve for tickets.
e.How is the graph in part (c) above as an example of a Laffer Curve.

© BrainMass Inc. brainmass.com October 25, 2018, 2:01 am ad1c9bdddf
https://brainmass.com/economics/elasticity/calculating-total-revenue-and-price-elasticity-of-demand-283924

Attachments

Solution Preview

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

Solution:

a. Plot the demand curve i.e., Qd = F (p)

Fine 0 10 20 30 40 50
Number of Tickets 0 8 7 6 4 2

b.Use the data in Table IV to ...

Solution Summary

Solution describes the steps to find out total revenue and price elasticity of demand.

$2.19
See Also This Related BrainMass Solution

Elasticity, Demand, and Total Revenue

If possible try to write down references please.

View Full Posting Details