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    Macroeconomics: Elasticity, Demand, and Total Revenue

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    Prepare an analysis by answering the questions below. Be sure to cite your references using APA format.

    Demand Schedule for Barbeque Dinners

    Price Quantity Demanded Total Revenue Elasticity Coefficient Elastic or Inelastic
    $4 100
    __________ XXXX XXXX
    6 80
    __________ __________ __________
    8 60
    __________ __________ __________
    10 40
    __________ __________ __________
    12 20
    __________ __________ __________
    14 1
    __________ __________ __________

    Calculate the total revenue for each level of demand.

    Using the midpoints formula presented in the text, calculate the elasticity coefficient for each price level, starting with the coefficient for the $4 to $6 level. For each coefficient, indicate what type of elasticity is indicated, elastic demand, inelastic demand, or unitary demand.

    Define elastic, inelastic, and unitary elasticity means. How are these related to total revenue?

    Explain how the elasticity changes as price increases. Why is this happening?

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    https://brainmass.com/economics/elasticity/macroeconomics-elasticity-demand-and-total-revenue-325978

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    Demand Schedule for Barbeque Dinners
    Price Quantity Demanded Total Revenue Elasticity Coefficient Elastic or Inelastic
    $4 100 __________ XXXX XXXX
    6 80 __________ __________ __________
    8 60 __________ __________ __________
    10 40 __________ __________ __________
    12 20 __________ __________ __________
    14 1 __________ __________ __________

    A. Calculate the total revenue for each level of demand.
    See the following table for calculations.

    Total Revenue = Price * Quantity Demanded
    Price Quantity Demanded Total Revenue Elasticity Coefficient Elastic or Inelastic
    $4 100 $400 XXXX XXXX
    6 80 $480 -0.56 Inelastic
    8 60 $480 -1.00 Unitary
    10 40 $400 -1.80 Elastic
    12 20 $240 -3.67 Elastic
    14 1 $14 ...

    Solution Summary

    Elasticity, Demand, and Total Revenue are determined. This solution defines the terms elastic, inelastic and unitary elasticity and how they relate to total revenue. The solution also explains how the elasticity changes as price increases. The total solution is 513 words.

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