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mid-point formula

3. In the following table, calculate the elasticity of demand for each price range, using the mid-point formula. At what price does the producer maximize revenue? How can the firm use the information contained in the elasticity coefficient to determine pricing policy for profit maximization?

Price Quantity Total Revenue Elasticity

$375 250
$300 350
$250 475
$200 550

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This job calculates the elasticity of demand for each price range, using the mid-point formula.

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