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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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    https://brainmass.com/economics/output-and-costs/demand-elastic-or-inelastic-349158

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