Answer to Question #185913 in Economics for Jovi

Question

Calculate elasticity of price TR andMR price =6,5,4,3,2,1,0 Quantity=0,100,200,300,400,500,600

Answer 1

P = 6, 5, 4, 3, 2, 1, 0

Q = 0,100,200,300,400,500,600

TR=0,500,800,900,800,500,0

MR = -, 5, 3, 1, -1, - 3, - 5.

The demand is elastic for P > 3 and inelastic for P < 3.