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Demand: Elastic or Inelastic

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Here is some data on the demand for marshmallows:

Price Quantity
$10 100
$ 8 300
$ 6 700
$ 4 1300
$ 2 2200

(a.) Is demand elastic or inelastic in the $6-$8 price range? How do you know?

[(700-300)/(700+300/2]= 400/500= .8

(b.) If the table represents the demand faced by a monopoly firm, then what is that firmâ??s marginal revenue as it increases output from 1300 units to 2200 units? Show all work.

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